EU law sees banks, such as Investec, and fintech start-ups get together
London — In a sign that a sweeping new EU banking law may be spurring banks and fintech start-ups to tie-up, Investec Plc has formed a pilot programme with MarketInvoice, a British online lender to businesses. London-based MarketInvoice, which arranges loans for small companies secured by accounts receivable, will handle the underwriting for Investec customers in the partnership, according to the bank’s website. Investec will provide £50m ($67m) in the first year to fund the loans, Anil Stocker, the start-up’s co-founder and CEO, said in an interview. A spokesperson for London-and Johannesburg-based Investec declined to comment. The deal is just the latest in a series of tie-ups between traditional financial services companies and UK online lenders in the last year. In August, Dutch insurer Aegon placed £160m with Funding Circle for loans to small companies. Three months later, LendInvest raised funds from Citigroup to offer buy-to-let mortgages on its website. More deals may be com...
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