Chetwood Bank launches wholesale banking division

Chetwood Bank is expanding its reach by launching a new wholesale banking division. For retailers and service providers, this is a signal that more liquidity is entering the consumer finance market. Wholesale banking allows smaller lenders and FinTechs to secure the funding they need to offer loans to your customers. By providing capital to non-bank lenders, Chetwood is effectively backing the companies that provide Buy Now, Pay Later (BNPL) and installment loan products at the point of sale. The new division will focus on providing structured finance and asset-backed lending. While the bank is also moving into commercial real estate, the core of this move is about strengthening the financial backbone of the lending industry. When wholesale banks expand, it typically leads to more competitive rates and more diverse financing options for merchants. You may see your current financing partners access new credit lines or see new niche lenders enter your specific vertical because the 'money behind the money' is becoming more accessible. This move suggests heightening confidence in the private credit and consumer debt markets despite broader economic shifts.

Source: Finextra — Lending

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