RCS enters secured lending business
BNP Paribas-owned consumer finance company introduces peer-to-peer vehicle and home improvement loans
Unsecured lender RCS has quietly entered the secured lending space. The consumer finance company, owned by the Paris-listed BNP Paribas, has been offering vehicle finance for four months and is also getting into financing home improvements. The decision is part of the strategy RCS embarked on at the end of 2016 to try and gain market share by adding more products. The lender had predominantly offered store cards enabling consumers to buy goods on credit, and personal loans. RCS CEO Regan Adams said the lender realised how difficult it could be to compete with the big banks in asset financing, which is why RCS is carving a niche to finance private peer-to-peer vehicle transactions. “We know the auto finance market is quite competitive. We spent a lot of time thinking carefully where we want to position ourselves. That’s why we chose to focus on the peer-to-peer space. We know the dealer market is very competitive and the likes of Wesbank and MFC have that market. It wouldn’t mak...
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