MetaBank, a wholly-owned subsidiary of Meta Financial Group, Inc. (NASDAQ: CASH) (“Meta”), and Liberty Lending, LLC (“Liberty Lending”) today announced that they have entered into a three-year program agreement under which MetaBank will provide personal loans to clients of Liberty Lending.
Meta and Liberty Lending will jointly market the program through a wide variety of marketing channels. Under the deal, MetaBank expects to generate between $ 500 million and $ 1 billion in personal loans over the life of the program.
This marks Meta’s entry point into a direct consumer credit business, leveraging its balance sheet to generate higher income on higher margin products. The 2016 acquisition of Specialty Consumer Services (“SCS”), now a division of MetaBank, is the platform from which the Liberty Lending program and other similar programs will be launched.
“We are excited to partner with a respected and growing brand in the online lending space, and we look forward to working together to deliver the best lending products to consumers,” said Brent Turner, Executive Vice President and head of consumer loans at Meta. “Additionally, leveraging the underwriting expertise and consumer credit experience of the SCS team provides us with great resources to achieve our consumer credit goals.” The loan products contemplated under this agreement are fixed-term loans ranging from $ 3,500 to $ 45,000 with terms ranging from 13 to 60 months.
“Liberty Lending’s mission is to provide innovative lending solutions to deserving clients. This partnership will allow Liberty Lending to continue its mission with clients by leveraging Meta’s wealth of resources and expertise, ”said Bill Yialamas, Chief Financial Officer of Liberty Lending.