Fifth, get a solar lender dividend financing

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Fifth Third Bancorp is buying renewable energy lender Dividend Finance in a deal that will give Cincinnati Bank a foothold in the growing solar energy market while boosting its digital capabilities.

The $211 billion asset company said Wednesday that the acquisition will help its customers fund solar upgrades and other projects through Dividend Finance’s point-of-sale loan platform. Dividend financing contractors usually provide financing to clients who invest in solar energy and other home improvement projects.

“The addition of dividend financing to our renewable energy portfolio enhances Fifth Third’s growing digital service capabilities and supports the bank’s commitment to environmental leadership in financial services,” said Greg Carmichael, the third chairman and CEO, in a press release.

The deal will continue in the direction of the banks Purchase Point of sale lenders focus on home improvement. In recent months, Goldman Sachs struck a deal to acquire financial technology company GreenSky, Trust Financial acquired Service Finance, and Financial Districts acquired EnerBank USA.

San Francisco-based Dividend Finance, launched in 2013, operates a financing platform that contractors and homeowners can use to make quick credit decisions. The company focuses on borrowers with prime and superior credit scores.

The press release did not reveal the purchase price.

“We are pleased to see the company become part of the Fifth Third Family, and we are confident that its growth and momentum will be further enhanced by this transformation,” said Raj Mundy, CEO of Dividend Finance. Mundy is a partner at LL Funds, the largest contributor to fintech.

A third fifth said the deal would help it achieve its goal of financing sustainable investments of $8 billion by 2025. The bank said it was “actively evaluating a new sustainable financing target” to partly reflect the impact of the deal.

The deal is expected to close in the second quarter.

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