Finnish peer-to-peer lending platform Fellow Finance has signed its merger plan with Evli Bank, ahead of the launch of its new banking brand – Fellow Bank – in the first half of next year.
Fellow Finance and Nordic private lender Evli Bank announced plans to merge in July this year, to create “a unique new bank in Finland”.
Under the agreement, Evli Bank will demerge into two businesses: a new asset management group; and a company that will carry on Evli’s banking services and into which Fellow Finance will merge, known as Fellow Bank.
Both the demerger and merger plans were signed on 30 September 2021, according to a stock exchange announcement from Evli Bank.
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Earlier this month, Fellow Finance chief executive Teemu Nyholm said the platform was ready to launch Fellow Bank in the first half of next year.
He said the new bank would be “digital and customer-oriented” with “solid capital adequacy in Finland” to serve both private and small- and medium-sized enterprise customers.
Nyholm said it would broaden the lender’s customer base, cut its funding costs by attracting deposits and improve its profitability.
At the time of the announcement in July, Evli Bank chief executive Maunu Lehtimäki said the merger would create a solid foundation for a “well-capitalised new bank for the digital age that will combine the core expertise of both companies”.