Barclays Africa has acquired a 49% stake in South African P2P platform RainFin.
The new cash flow will help boost RainFin’s product range. According to RainFin, the new products will include supply chain finance, enterprise development funding, fixed asset purchases and mid-sized corporate debt products.
“This shows that the peer-to-peer lending model has come of age in South Africa and this transaction brings the concept into the mainstream of the country’s financial services sector,” said Sean Emery, CEO, RainFin.
A number of large banks have been looking into peer-to-peer lending services, with names like City Group, Capital One, Bank of Montreal and Deutsche Bank acquiring loans originating from P2P platforms.
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“We believe that a well-structured, suitably regulated, scalable and secure peer-to-peer exchange will compliment and supplement our present lending channels,” a Barclays Africa spokesperson added.
Neither Bacrlay’s Africa nor RainFin have commented on amounts or specific terms regarding the 49% acquisition.