RainFin CEO Sean Emery says Absa’s exit will position the peer-to-peer lender to service multiple financial institutions on its platform including asset managers and pension funds. Absa, which bought into RainFin for an undisclosed amount in March 2014, said it would sell its 49% stake back to RainFin’s founding shareholders to focus on its core operations. Funding fintech companies remained part of the bank’s strategy and it was investing in 10 fintechs across the continent, an Absa spokesperson said. "We believe peer-to-peer lending platforms still have potential but if we do it in future, it will be aligned to our strategy," the spokesperson said. RainFin, which is an online lending marketplace that connects borrowers and lenders, was facilitating more than R1m per day in small business loans, Emery said. This accounted for 95% of its lending activity.
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