Metro Bank Acquiring RateSetter for £3M

Earlier in the summer we learned that Metro Bank was in talks with RateSetter on a possible acquisition; today, it was announced a deal has been agreed to with just £2.5 million being paid up front for RateSetter UK with another £500,000 payable in 12 months; there is also another £9 million that is on offer if RateSetter can achieve certain performance criteria; the deal does not include RateSetter Australia; the RateSetter retail investor marketplace will be closed to new investors with all future personal loans funded by Metro Bank’s deposit base; RateSetter has raised £43 million in venture capital over the past 11 years so this will be a significant haircut for all their investors; RateSetter CEO Rhydian Lewis said, “RateSetter and Metro Bank share a focus on delivering something better for the customer and the strategic logic of pairing Metro Bank’s strong deposit base with our lending capability is compelling.” AltFi.

Peter Renton is the chairman and co-founder of LendIt Fintech, the world’s first and largest digital media and events company focused on fintech.

LendIt Fintech conducts three conferences a year for the leading fintech markets of the USA, Europe, and Latin America. LendIt also provides cutting-edge content all year long via audio, video, and written channels.

Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series.

Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.

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