The Co-operative Bank has launched a new loans marketplace with a fintech platform in what it said is a “UK high-street bank first”.
The Manchester-based ethical banking chain to search for a personal loan quote, with a variety of repayment terms, from a panel of British loan providers.
The platform will be run by Freedom Finance, whose proprietary technology and machine learning allows consumers to carry out a single ‘soft search’ of unsecured personal loans that will not affect their credit profile.
The Wythenshawe-based fintech, founded in 2007, said the search takes minutes, with successful applicants receiving their cash the same day.
Loans currently run from £1,000 to £25,000, from one to seven years, with interest rates ranging between 3.1 per cent annual percentage rate to a maximum rate capped at 39.9 per cent annual percentage rate.
The 145-year-old Co-operative Bank said it has picked the panel of regulated lenders, which does not include payday lenders, in line with its ethical policies.
Co-operative Bank product lead for unsecured lending Tracey Harrop said: “We know many of our customers seek finance to help them afford key purchases or consolidate existing debt and with loans marketplace they will be able to complete one soft search of our select panel of lenders to find personal loan options most suited to their needs.”
Freedom Finance chief executive Brian Brodie said: “Our highly personalised lending platform allows our partners to strengthen their offering in a highly competitive market.”
Co-operative Bank and Freedom Finance said they will act as credit brokers, not as lenders on these loans, for which they will receive a commission based a successfully approved loan and the amount borrowed.