App-based bank Lunar has sold its peer-to-peer (P2P) lending business to Swedish FinTech SaveLend to provide the necessary focus for the business.
According to Lunar, a specialist in this field would be better able to meet the needs of its customers than a bank, given the sizeable investment required in the peer-to-peer lending industry. Around 17,000 lenders and 7,000 borrowers will transfer to SaveLend as a result of the acquisition.
Since P2P lending requires a lot of expertise, Lunar is not the first digital bank to discontinue this service. Zopa, a pioneer in FinTech, stopped offering peer-to-peer loans in 2021 in order to concentrate on its banking service.