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.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
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.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
