FinTech News
Barclays Officially Completes Best Egg Acquisition
Six months after announcing plans to acquire FinTech loan originator Best Egg, Barclays has now closed the transaction.
About Barclays’ Acquisition of Best Egg:
The deal is done. Recently, Barclays US Consumer Bank announced that it has completed its purchase of Best Egg. This acquisition was first announced in October of last year. At the time, the bank disclosed that it was paying $800 million for the digital lender.
Best Egg is a FinTech direct-to-consumer personal loan origination platform. According to Barclays, the service has issued more than $40 billion in personal loans since 2013, serving over two million customers. Moreover, last year, Best Egg originated $7 billion in personal loans.
Despite the acquisition, the Best Egg brand will continue to operate, albeit under the management of Barclays US. As the bank notes, this marks a milestone in its growth strategy for the United States. In its initial press release, Barclays stated that it expects the brand and its business model to generate “an attractive return on investment for Barclays,” even comparing it to its highest-returning businesses in the United Kingdom.
On Best Egg, borrowers can find personal loan options for a variety of needs. Additionally, homeowners can get rates that are up to 20% lower. The platform currently maintains an “A” rating from the Better Business Bureau and has an “excellent” 4.6 overall rating (with nearly 12,000 reviews) on Trustpilot.
What They’re Saying:
Commenting on the acquisition, Barclays US Consumer Bank CEO Denny Nealon said, “We’re excited to welcome Best Egg’s customers and colleagues to Barclays. This acquisition aligns with our strategy by expanding our personal lending capabilities and supporting the development of a more diversified, digitally-focused consumer bank.” Nealson added, “Best Egg brings a proven platform and a talented team, and we look forward to building on those strengths together.”
Meanwhile, Best Egg CEO Paul Ricci stated, “Joining Barclays marks an important moment for Best Egg. We’re proud of the business we’ve built, our talented team, and the trust we’ve earned from customers. Together with Barclays, we look forward to accelerating growth and continuing to deliver innovative solutions that support customers’ financial well-being.”
My Thoughts:
Overall, this seems like a win-win for Best Egg and Barclays. Of course, what remains to be seen is whether it ends up being a good thing for consumers. While Barclays does sound committed to keeping true to what made Best Egg a success in the first place, there’s always concern when an established bank takes over a FinTech. With that, we’ll have to keep an eye out for how the two newly joined brands work together in the months and years ahead.
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