Shares in Sydney headquartered fintech lender Plenti soared on Tuesday after the company announced it has partnered with one of Australia’s biggest banks, NAB, to offer an electric vehicle loan program.
The strategic partnership between Plenti and NAB will actually cover a range of products – including car and EV loans, before then launching renewable energy financing options.
NAB may now also acquire up to 15% of Plenti’s share capital through placements and market purchases, with the details depending on the uptake.
But it is the EV loan program which will kick off first and has the potential to further accelerate Australia’s uptake of electric vehicles. The two companies are counting on a loan book of at least $1 billion, and up to $3 billion as interest in EVs accelerates.
Plenti’s car loans already offer customers 0.5% p.a. off interest rates when financing an EV, thanks to a collaboration with the Clean Energy Finance Corporation.
Plenti and NAB expect to launch their “NAB powered by Plenti” car and EV loan program in the first half of 2024, with NAB set to be responsible for marketing and promoting the co-branded loans to customers.
In turn, Plenti will be responsible for the provision of loan applications, credit assessment, loan settlement, and ongoing loan and customer management.
The car and EV loans will be funded by NAB and held on the bank’s balance sheet, with credit risk also borne by the bank. This marks the first secured car loan offer for the bank.
“This strategic partnership makes sense – it brings together one of Australia’s largest and most trusted financial institutions with one of Australia’s most innovative and awarded financial technology companies,” said Daniel Foggo, founder and CEO of Plenti.
“Together we see an opportunity to better serve new and existing customers with car and renewable energy lending products and we’re excited about the potential for future expansion of the strategic partnership over time.”
“This strategic partnership is expected to have a meaningfully positive impact on Plenti’s growth and profitability in future years.”
In fact, the partnership has already benefited the fintech lender, whose shares skyrocketed 113% off the back of the news, although Plenti’s share price has since slid and as of writing appears yet to have stabilised after the news.
“We’re excited to launch our first products with Plenti next year and we look forward to working with Plenti to explore ways to expand the strategic partnership further,” added Paul Riley, executive for personal everyday banking at NAB.
“The use of electric vehicles and environmentally sustainable products in the household is becoming more common in Australian homes and we’re keen to support our customers transition to a low emissions future.”
Plenti shares jumped 50 per cent to 51c by mid afternoon trade, giving the company a market value of around $89 million. They hit a high of nearly 70c in earlier trade.
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.