Fifth Third Bancorp is buying the renewable energy lender Dividend Finance in a deal it that would give the Cincinnati bank a foothold in the growing solar market while bolstering its digital capabilities.
The $211 billion-asset company said Wednesday that the acquisition would help its customers finance solar upgrades and other projects through Dividend Finance’s point-of-sale loan platform. Dividend Finance contractors typically offer financing to customers investing in solar power and other home improvement projects.
“The addition of Dividend Finance to our renewable energy portfolio enhances the scale of Fifth Third’s growing digital service capabilities and supports the Bank’s commitment to environmental leadership in financial services,” Fifth Third Chairman and CEO Greg Carmichael said in a press release.
The deal would continue a trend of banks
San Francisco-based Dividend Finance, which started in 2013, runs a financing platform that contractors and homeowners can use to make quick credit decisions. The company focuses on borrowers with prime and super-prime credit scores.
The press release did not disclose an acquisition price.
“We are delighted to see the company become part of the Fifth Third family, and confident that its growth and momentum will be further enabled by this transition,” said Raj Mundy, Dividend Finance’s executive chairman. Mundy is a partner at LL Funds, the fintech’s majority shareholder.
Fifth Third said the deal would help it achieve its goal of financing $8 billion worth of sustainable investments by 2025. The bank said it is “actively assessing a new sustainable financing target” partly to reflect the impact of the deal.
The deal is expected to close in the second quarter.
