UK challenger Metro Bank has entered the vehicle financing market, with the launch of a digital car loan product under its Ratesetter brand.
The new hire purchase loans for the purchase of used cars are initially available through motor brokers using Ratesetter’s technology, which issues borrowers with a bespoke loan quote via its automated and real-time decision-making process.
Metro Bank acquired peer-to-peer lender Ratesetter in 2020.
The entire application process is paperless and eligible customers who receive instant approvals will be able drive their car off the forecourt the same day, according to Metro Bank.
Lloyd Collett, head of sales motor finance at Metro Bank, said: “By providing an efficient and market-leading end-to-end journey through RateSetter technology for our broker partners, we’re ensuring quick, reliable and data-led decisions for their customers.”
The first UK brokers to pilot the new product are CarFinance 247 and Motion Finance.
Collett confirmed that the bank will add more broker partners throughout the UK in the coming weeks, to “provide an increasing number of borrowers with a clear and transparent product to finance their car”.
Louis Rix, chief operating officer at CarFinance 247, added: “We look forward to working closely with the team at Metro Bank and supporting their exceptional customer service team to deliver a quick turnaround and highly efficient payout process to every eligible applicant.”