FinTech lender Plenti Group (ASX: PLT) and National Australia Bank (NAB) have teamed up to launch a “NAB powered by Plenti” car and electric vehicle (EV) loan, thus making Plenti renewable energy finance available to NAB customers. With 38% of Aussies now considering sustainability actively in their purchase decisions, loans like these are well-timed, helping Australians see through their goals. 

As part of the agreement, Plenti will offer select renewable energy financial solutions to NAB customers. The aim is to help Australian households cut energy costs and lower carbon emissions, especially crucial during this inflationary period. This loan will be launched in the first half of 2024. 

At the same time, the parties have entered into an equity investment agreement under which NAB may acquire up to 15% of Plenti’s share capital through placements and market purchases. 

Plenti’s Founder and Chief Executive Officer, Daniel Foggo, said, “This strategic partnership makes sense – it brings together one of Australia’s largest and most trusted financial institutions with one of Australia’s most innovative and awarded financial technology companies. Together we see an opportunity to better serve new and existing customers with car and renewable energy lending products and we’re excited about the potential for future expansion of the strategic partnership over time.”

In the first phase of their strategic partnership, Plenti and NAB will introduce a joint car and electric vehicle (EV) loan product, branded “NAB powered by Plenti”. NAB will handle marketing to its broad personal banking customer base, while Plenti will function more on the product front, managing loan processes and ongoing customer and loan-related activities. The collaboration includes joint design efforts to enhance customer experiences and reporting. 

NAB will finance the loans, holding them on its balance sheet, and assuming credit risk. Plenti’s compensation includes upfront payments for setup, an initial fee per funded loan with reductions after $1 billion, and a monthly service fee scaling with the loan book, diminishing after $3 billion. This partnership aims to streamline lending processes and improve overall customer experiences.

Executive, Personal Everyday Banking at NAB, Paul Riley, added, “The use of electric vehicles and environmentally sustainable products in the household is becoming more common in Australian homes, and we’re keen to support our customers’ transition to a low emissions future. We’re excited to launch our first products with Plenti next year, and we look forward to working with Plenti to explore ways to expand the strategic partnership further.” 

In H1 FY24, the Company showed plenti-ful growth: its portfolio expanded by 29% on H1 FY23, with the renewable energy loan book specifically increasing by 44% to around $230 million. 

Overall, its revenue rose by 52%, reaching $96.8 million. However, Plenti’s NPAT (net profit after tax) declined significantly by 76%, from $2.6 million to $600,000, rebounding from a $16.2 million loss in H2 FY23. This dip in NPAT was partly due to increased expenses for product development, up by 18%, as the Company invested in future growth. 

Looking forward, Plenti wants to bring in over $200 million in revenue for FY24. It finished the first half with a strong cash position of $142.2 million.

Its agreement with NAB, one of the largest Australian banks, has an initial term of five years and can extend for a further five years with the agreement of both Plenti and NAB. As Aussies turn to greener resources, loans like these are revved up to become the eco-nomical choice.