Fifth Third boosts green energy portfolio with acquisition of Dividend Finance – Cincinnati Business Courier – Cincinnati Business Courier

Fifth Third Bancorp continues to expand its financial technology capabilities as it has agreed to another deal to buy a fintech firm.
Downtown Cincinnati-based Fifth Third (Nasaq: FITB), the largest locally based bank and the ninth-largest U.S.-based consumer bank, reached a deal to buy San Francisco-based Dividend Finance, which provides tech-enabled financing for residential renewable energy and sustainability projects. Financial terms of the deal, expected to close in the second quarter this year, weren’t disclosed.
Dividend Finance, founded in 2013, is one of the nation’s top solar lenders. It has raised $385 million in funding, according to startup database Crunchbase. The company employs about 185, according to multiple databases.
“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 CEO Greg Carmichael said in a news release.
Fifth Third has made multiple moves into the fintech world in recent years. Those have included the June 2021 acquisition of health care lending and banking fintech firm Provide. It also It partnered in 2020 with Reston, Va.-based Fundation Group to make it faster and easier for small businesses to get loans. It has invested in numerous financial technology firms. And Fifth Third has rolled out its own tech products, including Momentum Banking last April. That product provides customers with a high-tech way to manage their personal finances using mobile devices.
Dividend Finance developed a point-of-sale technology to enable contractors and homeowners to easily access financing for solar and home improvement projects. Its one-stop solution enables contractors to offer customers a smooth financing process. It has customers across the country and focuses on prime and super-prime borrowers.
“The Dividend team shares Fifth Third’s commitment to solutions that improve customers’ lives and has a strong track record of innovation, growth and excellent customer experience,” Fifth Third president Tim Spence said in the release.
Dividend Finance CEO Eric White said Fifth Third’s “extensive balance sheet, advantaged cost-of-funds and broader resources … will provide a tremendous edge to our customers and enable us to continue to accelerate growth.”
Fifth Third has focused on environmental sustainability in several ways, including setting a goal to provide $8 billion in sustainable finance by 2025. That includes lending and financing for solar, wind, geothermal, biomass and hydropower. The Dividend Finance deal is causing Fifth Third to work on setting a new, higher target.
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