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SocietyOne is a marketplace lending platform that allows customers to borrow money from investors rather than ‘payday lenders’, offering lower rates on loans from $5,000 to $35,000 to those with at least two years of good credit history on the Credit Bureau.
The agreement sees Beyond Bank tip in $1.5 million for an equity stake in the fintech business as well as increasing its current funding commitment in personal loans to $10 million.
SocietyOne now has 10 mutual banks and credit unions among its 200 investors.
“We’re delighted to welcome Beyond Bank as a shareholder in our company," said Jason Yetton, SocietyOne’s chief executive officer and managing director
"This is a clear sign of our close relationship that dates back more than two years when we first began discussing the opportunities of becoming an investor funder. From that initial contact, the bank has now gained valuable experience and insights into the benefits that we have been able to provide as the leader in lending market places in Australia through our innovative approach to personal and secured agribusiness loans."
Wayne Matters, Beyond Bank’s deputy chief executive officer, added: “The links that we have forged with SocietyOne have underlined to both of us what can be achieved when you put the experience, strength and depth of an organisation like ours together with the entrepreneurial drive and creative dynamism of a company like SocietyOne...
“We both share similar values in supporting customers and communities in an open, honest and trustworthy manner. SocietyOne aims to share the financial benefits between its borrow customers and funders, and this is very much part of our ethos too.”
[Related: Fintechs to ‘shrink’ role of banks]