RateSetter has become the first peer-to-peer lender in Australia to compete directly with the banks by offering secured personal loans.
Loans with RateSetter can now be secured against personal property such as a car and those borrowers who are able to offer an asset as security will be rewarded with more affordable repayments.
RateSetter CEO Daniel Foggo said entering the secured loans market was a strategic play to broaden its offering to customers and demonstrate its commitment to providing a real alternative to traditional lenders.
“Secured loans are a vital market for banks, and our move into the product offering signifies the potential for RateSetter and P2P lending to have a real impact on the banking sector as a whole,” he said.
“It also demonstrates our commitment to providing a better deal to borrowers and a safer platform for lenders.
“We believe RateSetter’s move into secured lending is a signal that fintech in Australia is now getting serious – taking on the core segment of bank profits, [and] not just nibbling around the edges.”
The P2P lender has also announced a referral partnership with national car finance brokerage Stratton.
Stratton CEO Rob Chaloner said RateSetter is a key strategic partner for the brokerage.
“We are always looking for ways to deliver smarter products and services, so we are excited to be part of an Australian first in providing secured P2P automotive loans to Australian consumers,” he said.
“We are looking forward to filling a number of gaps in the Australian automotive financing market and being able to offer a far better deal to those creditworthy borrowers who are currently overlooked by more traditional lenders.”