Your eligible deposits with Metro Bank PLC are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. “The ability to enhance our offer of unsecured lending to our customers is an important strategic ambition as we continue to evolve the bank and increase our returns,” said Daniel Frumkin, chief executive at Metro Bank. The acquisition is anticipated to reduce the Company's CET1 ratio by circa 0.3% at 30 June 2020 on a pro forma basis. Any fees will also depend on your credit profile. The price Metro Bank would pay for RateSetter is unclear and there is no guarantee that the talks between the two firms would lead to a transaction, Sky News said. The bank has noted that RateSetter’s originating and underwriting capacity could boost Metro Bank’s lending yield by approximately eight per cent. “Access to your online RateSetter account and monthly statements continues in the normal way and our investor services team remains available to help with any questions you may have. RateSetter and Metro Bank share a focus on delivering something better for the customer and the strategic logic of pairing Metro Bank's strong deposit base with our lending capability is compelling. Metro Bank bought RateSetter, a peer-to-peer platform, in August. Metro Bank, Personal loans, Ratesetter Metro Bank has completed its acquisition of peer-to-peer lender RateSetter. The deal was first announced in August and revealed that Rhydian Lewis (pictured), co-founder and chief executive of RateSetter, would join Metro Bank’s executive committee. Sources said Metro would use the Ratesetter brand to make loans through price comparator websites and the Metro Bank name for loans taken out in its … Both RateSetter and Metro Bank are innovative businesses with a shared focus on delivering something better for customers, making this a natural pairing. RateSetter continues to manage its existing loan portfolio, funded by peer-to-peer investment, originated before the acquisition, but new lending will no longer use P2P … The deal was confirmed yesterday evening (14 September) and will see the bank solely fund RateSetter’s unsecured personal loans. Registered in England and Wales. RateSetter's originating and underwriting capability will enable the bank to rapidly accelerate this ambition via an existing, scalable platform. Metro Bank’s share price had plunged nearly six percent in early trading. Read more: What’s happening at RateSetter? It was confirmed on 3 August that Metro Bank was acquiring RateSetter in a deal worth up to £12m – far below the … Going forward, all new unsecured personal loans originated by RateSetter will be funded by Metro Bank, in line with Metro Bank’s stated strategy to grow in this area. Metro Bank PLC is an independent UK Bank - it is not affiliated with any other bank or organisation (including the METRO newspaper or its publishers) anywhere in the world. The acquisition is conditional upon approval from the Financial Conduct Authority and shareholders holding at least 60 percent of RateSetter's shares acceding to the relevant transaction documents and is expected to close by the fourth quarter this year. Along with that sum the bank says there will be an additional consideration of up to £500,000 payable 12 months after completion and further consideration of up to £9 million payable on the third anniversary of the completion of the transaction. RateSetter will continue to manage the existing RateSetter loan portfolio and Provision Fund on behalf of its existing peer-to-peer investors, with Metro Bank assuming no credit risk for these existing loans. Metro Bank has confirmed that it is in exclusive talks to buy the UK's biggest P2P lender RateSetter. The acquisition brings a talented team including co-founders Rhydian Lewis and Peter Behrens and CFO Harry Russell. The board of directors of RateSetter unanimously recommends the transaction and that shareholders of RateSetter accede to the relevant transaction documents. RateSetter’s low sale price to Metro Bank has led analysts to query whether the peer-to-peer lender was under pressure to do a deal. Metro Bank, the high street lender which has been beset by problems during a troubled 12-month period, is in advanced talks to buy Ratesetter, one of Britain's biggest peer-to-peer lenders. Metro Bank has agreed to acquire RateSetter for initial consideration of £2.5 million, with £500,000 payable 12 months after completion subject to the satisfaction of certain criteria and a further £9 million payable on the third anniversary of the transaction. “Apart from the remaining essential lending, the investor portfolio will go into run-off. © Peer2Peer Finance News 2020 Rhydian Lewis, RateSetter co-founder and chief executive, will join Metro Bank’s executive committee on completion of the deal. Any deposits you hold above the limit are unlikely to be covered. (Dave Rushen/SOPA Images/LightRocket via Getty Images) Troubled challenger bank Metro has confirmed it is in early talks to acquire peer-to-peer lender RateSetter.Metro Bank said in a statement on Monday it had entered into exclusive deal talks with RateSetter, but said discussions were “at an early stage.” And RateSetter's acquisition by Metro Bank is a particular blow given it was one of the few platforms almost solely funded by personal investors. Metro Bank has completed its acquisition of peer-to-peer lender RateSetter. Rhydian Lewis will join Metro Bank's Executive Committee and report directly to Metro Bank's CEO, Daniel Frumkin.Following completion, Metro Bank will use its deposit base to fund all new unsecured personal loans originated via the RateSetter platform on Metro Bank's balance sheet. Metro Bank plans to significantly grow RateSetter’s lending through the RateSetter platform, using the lending and credit management capability RateSetter has built over the last decade. RateSetter's existing lenders will see their existing loans paid off while borrowers meet their repayments, as usual. Metro Bank weighs up risks of Ratesetter deal after disastrous year The scandal-hit bank wants to buy the peer-to-peer lender, but is the timing – and the price – right? The rate you’re offered will be based on your circumstances and the details of your loan. Metro Bank has agreed to buy one of Britain’s biggest peer-to-peer lending platforms for an initial payment of £2.5 million as the troubled bank seeks to revive its fortunes.The purchase price for “This means the investor loan portfolio will decrease in size over time but our focus on investment performance will remain throughout.”. Delivers strategic ambition to enhance unsecured lending capability, Metro Bank PLC ("Metro Bank" or "the Company") today announces that it has agreed to acquire Retail Money Market LTD ("RateSetter") for initial consideration of £2.5 million, with additional consideration of up to £0.5 million payable 12 months after completion subject to the satisfaction of certain criteria and further consideration of up to £9 million payable on the third anniversary of the completion of the transaction, subject to the satisfaction of certain key performance criteria. Once RateSetter shareholders holding 60 percent of RateSetter's shares have signed or acceded to the relevant transaction documents, it is expected that RateSetter shareholders who have not signed or acceded to the transaction documents will be dragged into the transaction, resulting in Metro Bank acquiring 100 percent of RateSetter's shares at completion.Daniel Frumkin, Chief Executive Officer at Metro Bank said: "The ability to enhance our offer of unsecured lending to our customers is an important strategic ambition as we continue to evolve the Bank and increase our returns. The acquisition does not include RateSetter Australia, which is being retained by shareholders. Company number: 6419578. The acquisition presents an attractive opportunity for Metro Bank to improve its lending yield, with RateSetter having achieved an average total gross yield of 8 percent for the financial year ending 31 March 2020, and is expected to be net interest margin enhancing in the first full financial year of ownership.Metro Bank will operate RateSetter as an independent platform and originate loans under both the RateSetter and Metro Bank brands. Following completion, Metro Bank will use its deposit base to fund all new unsecured personal loans originated via the RateSetter platform on Metro Bank's balance sheet. In April, RateSetter said it wanted to act as the consolidator in a deal, rather than be the acquired Metro Bank will snap up peer-to-peer lender Ratesetter after agreeing a £12m sale it hopes will push it into more profitable banking avenues. Metro Bank today announced that all necessary regulatory and shareholder approvals have now been received and the acquisition has completed. And why has RateSetter chosen Metro Bank? … RateSetter will continue to manage the existing RateSetter loan portfolio and Provision Fund on behalf of its existing peer-to-peer investors, with Metro Bank assuming no credit risk for these existing loans. As part of its strategy to enhance returns, Metro Bank has previously signalled its ambition to grow unsecured lending. Metro Bank has bought peer-to-peer lender RateSetter in a move that pushes challenger bank further into unsecured consumer lending.The deal, valued at £2.5m ($3.3m), was announced on Monday and follows a period of talks first confirmed in mid-June. RateSetter's holding in RateSetter Australia, which had a book value at 30 June 2020 of £13.7 million, will be distributed on a pro-rata basis to the existing RateSetter shareholders by means of a reduction in capital at or around completion of Metro Bank's acquisition of RateSetter. “RateSetter investors will continue to fund the ongoing essential secured residential property development, dealer finance, family finance and giffgaff lending. This acquisition therefore accelerates our plans, helps us to better meet the needs of our customers and further strengthens our position as the UK's best community bank." Metro Bank could pay between £25m and £50m to acquire RateSetter, according to new reports, as analysts predict that the platform could be bought at a “knockdown price.” Earlier today (29 June), The Telegraph quoted a Metro Bank source who said that the bank was concerned it would look bad if RateSetter’s loans defaulted – a growing risk given the fragile state of the pandemic-hit economy. RateSetter and Metro Bank have done a deal: RateSetter has been sold to Metro. RateSetter is an established business with a strong technology platform and a talented team who have deep experience in the consumer unsecured lending market. Metro Bank will operate RateSetter as an independent entity and make loans under both its and Metro Bank brands. Metro Bank PLC. Today we … As a peer-to-peer platform, RateSetter connects investors and borrowers and therefore does not hold deposits or loans on its balance sheet. Apart from the remaining essential lending, the investor portfolio will go into run-off. RateSetter and Metro Bank: acquisition completes. The move effectively closes RateSetter, once part of the ‘big three’ platforms, to new P2P lending. Metro Bank had already shown its interest when it comes to expanding within the unsecured lending sector, all in a bid to enhance its prospective returns. Industry News, News, Top 3 The transaction will be funded from existing cash resources, whilst the final fair value and goodwill elements will be determined as part of the Company's year-end accounting process. Following completion, Metro will use its deposit base to fund all new unsecured personal loans originated via the RateSetter platform on Metro Bank’s balance sheet. Metro Bank today announces that it has agreed to acquire Ratesetter* (Retail Money Market LTD) for initial consideration of 2.5 million GBP, with additional consideration of up to 0.5 GBP million payable 12 months after completion subject to the satisfaction of certain criteria and further consideration of up to 9 million GBP payable on the third anniversary of the completion of the transaction, subject to the … The rate you’re offered will be based on your circumstances and the details of your loan. "Metrobank" is the registered trademark of Metro Bank PLC. Metro Bank first said that it is in talks over the acquisition of RateSetter in June this year. RateSetter’s personal loan rate starts at 3.9% APR. 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