Paragon Bank has expanded its partnership with fintech Zeti in a move designed to accelerate green asset finance for UK SMEs and widen access to renewable energy funding.
Under the strengthened agreement, Zeti is formally appointed as fintech partner to Paragon’s SME Lending division, with its ZetiOS platform providing real-time asset data, emissions tracking and performance monitoring across financed portfolios.
The collaboration is aimed at improving lending speed and underwriting accuracy, while embedding ESG intelligence into credit decisions as more businesses seek funding for low-carbon infrastructure.
The enhanced partnership builds on a relationship that began in 2023 through Paragon’s work with Otto Car, Europe’s largest private hire fleet provider, where ZetiOS enabled a pay-per-use finance structure for low-emission vehicles. That scheme has already funded 75 vehicles, delivering 226,000kg of CO₂ savings and more than 1.27 million zero- or low-emission miles, alongside significant reductions in NOx emissions.
ROOFTOP SOLAR
The expanded scope will now support financing for rooftop solar, combined heat and power systems and small-scale wind projects. Structures are expected to mirror established Power Purchase Agreement models, allowing SMEs to repay funding in line with actual energy production and usage.
Matt Bass, Head of Specialist Finance in Paragon’s SME Lending division, said: “As a FTSE 250 lender working with more than 16,000 UK SMEs, Paragon is committed to funding a greener future for SMEs and the UK economy.
“We want to make a meaningful difference by providing simple and modern finance solutions which enable SMEs to have assets that reduce emissions and provide energy certainty.
“Zeti’s team is entirely aligned with these goals and their tech expertise enables us to do exactly that. Whether it’s pay-per-use vehicle finance or multi-asset renewable energy solutions, this partnership allows us to deliver smarter, data-driven outcomes for our customers at scale.”
NEXT-GEN INFRASTRUCTURE FINANCE
Zeti said the partnership removes traditional barriers to capital deployment, including rigid finance structures and limited access to asset performance data, positioning the deal as a bridge between conventional lending and next-generation infrastructure finance.
The move also complements Paragon’s wider clean-energy strategy, including its rooftop solar programme with HDM Energies, which is expected to deliver £24.9m in collective energy savings and cut emissions by 900,000 tonnes.
Main picture: (Left to right): Dan Saunders, Zeti founder and CEO; Matt Bass, head of specialist sales at Paragon SME Lending and Dave Kennon, Zeti Commercial Director.
