Fellow Finance‘s general meeting has on 22 December 2021 approved the merger of Fellow Finance into Evli Bank Plc “in accordance with the merger plan signed on 30 September 2021.”
The planned effective date of the merger “is on or about 2 April 2022.”
The company formed in the merger (Fellow Bank) will “cease intermediating new peer to peer loans or crowdfunded loans on Fellow Finance platform.”
Fellow Bank will continue to “service active and current loan investments normally and the cessation of intermediation does not require action from our customers.”
From the beginning of April, Fellow Bank’s customers will be “offered a possibility to sell their loan portfolios to Fellow Bank and to open an interest-bearing bank accounts and fixed term deposit accounts in Fellow Bank.”
Fellow Bank bank account and fixed term deposit account will be “offered with competitive interest rates.” As a Finnish credit institution, “the deposits in Fellow Bank are covered by the Finnish deposit guarantee scheme.”
After the beginning of the banking operations in the beginning of April, Fellow Bank “will be in contact with its clients about the possibility of selling their loan portfolio and opening a banking relationship.”
The planned merger of Fellow Finance Plc and Evli Bank Plc will form “a new digital, customer-oriented and well capitalized Fellow Bank focusing on serving clients – both private and SME – appreciating the ease-of-use and flexibility in finances as well as clients looking for attractive and safe returns for their savings.”
As covered, Fellow Finance Plc is a loan-based crowdfunding and peer-to-peer lending platform.
The firm’s mission is “to transform the traditional financing and payments to direct transactions between people and businesses.”
Fellow Finance has “intermediated consumer and business financing of more than 900 million euros in Finland, Sweden, Denmark, Germany, Poland, and the Czech Republic and served more than 1 000 000 customers.”
The firm “is regulated by the Financial Supervisory Authority of Finland as an Authorized Payment Institution and listed on the Nasdaq First North Growth Market Finland.”