Royal Bank of Scotland (RBS) is looking to make a foray into the peer-to-peer (P2P) lending market with plans to launch an online P2P platform before this year end by collaborating with a third party operator.
The move forms part of a broader strategy which intends to support lending to smaller businesses through working with alternative finance providers, reports The Financial Times.
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The new P2P platform is targeted at offering funding for SMEs whose loan applications might have been rejected by a bank.
Ross McEwan, chief executive of RBS, said: "As the economic conditions improve, we also need to do more to show we are open for business. To do this, RBS and NatWest will be launching a network of eight new business accelerator hubs around the country to provide thousands of SMEs with the offer of free workspace, hands-on mentoring and a free programme of advice and support."
Investors looking for interest rates of nearly 6% will be able to lend through platforms to companies or individuals, who pay less interest than borrowing through a high street bank.
RBS’s move follows signing of a deal between Santander and Funding Circle earlier this year, to facilitate lending to smaller businesses.
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