Fifth Third’s New Fintech Deal

Note from the Publisher:  I really like this story because it shows a bank making a REALLY smart move to dramatically increase its loan business.  Contrast this with Wells Fargo, who also dramatically increased their business by opening over 2 million unauthorized credit card and deposit accounts, and we all know how that’s working our for them.  Cincinnatti-based Fifth Third bank has entered into an agreement to invest $50M with Atlanta’s GreenSky which offers consumer loans to homeowners for home improvements.  To date, they’ve provided funding of over $6.5B in loans, written through fourteen partner banks, which now includes Fifth Third.  Obviously GreenSky needed more loan making capacity and got a nice cool cash infusion of $50 million, and Fifth Third just got a great new origination source.  Love this deal. 

“Fifth Third Bancorp has finalized a partnership with a financial technology company that it expects will bring it hundreds of millions of dollars in loans.

Fifth Third (Nasdaq: FITB), Cincinnati’s largest locally based bank and the nation’s 14th biggest, invested $50 million in Atlanta-based GreenSky and partnered with the company to boost consumer loans.

Fifth Third expects the GreenSky arrangement to generate more than $100 million in consumer loans per quarter, Fifth Third CEO Greg Carmichael said Tuesday at the Barclays Global Financial Services Conference in New York. It’s targeting $700 million in consumer loan balances from the partnership by the end of 2018.”

Read Full Article at Cincinatti Biz Journals

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