UK-based Metro Bank is joining the auto financing market with a new digital car loan offer

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Metro Bank?is now offering a new digital car loan product under?the RateSetter brand, which provides hire purchase loans for used vehicles. CarFinance 247 and Motion Finance are the first brokers to pilot the offering.

Metro Bank acquired P2P lender RateSetter in September 2020. The bank?has retained this brand ever since, with loans offered through the?RateSetter platform in MetroBank’s branches as well as on third-party lending aggregators.

Today, using RateSetter’s technology, the bank can provide each customer with a loan quote, using an automated and real-time decision-making process. The application process is paperless and eligible customers would receive instant approvals. The entire car loan experience with Metro Bank, including the invoicing process, is fully digital for both the borrower and broker.

With Metro Bank on its panel, CarFinance 247, aims to assist hundreds of thousands of its customers to find the ideal financing option.?An automated?lending process?would facilitate loan volume growth, lead to operational cost reduction, and help manage workflow rule compliance.

The UK vehicle financing market has been going through tough times in 2022. The economic slowdown and shortage of semiconductor chips impacted car supply and drove up the cost of second-hand cars. Finance debt for new and used cars in the UK has risen to ￡40 billion per year, triggering concerns that consumers may default on their credit agreements amid soaring living costs.

Therefore, the market has recently seen a large influx of innovative payment solutions to suit customers’ individual circumstances. The used car market represented?￡22.2 billion of the UK vehicle finance debt burden, highlighting the need for alternative, flexible and convenient credit services.