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
(Full story may require subscription)