Auswide Bank (ASX:ABA) has entered into an agreement to divest its equity stake in P2P lender MoneyPlace.
The transaction is expected to be complete this month.
The bank said details of the transaction are confidential, but said it expects the transaction to have a positive impact on its full year financial results.
Auswide Bank will continue to utilise the MoneyPlace platform to originate consumer finance business and seek to grow its consumer lending book.
Ayswide Bank Managing Director Martin Barrett said the bank’s relationship with MoneyPlace demonstrates the way fintechs and traditional lenders can work together, and has allowed Auswide to achieve uplift in loan originations through non-traditional channels.
Shares in Auswide Bank (ASX:ABA) closed 0.6 per cent lower yesterday at $5.27.