Lending as a Service partner and fintech, Propel, will service new Pathward consumer loans
Pathward®, N.A., a national bank driven by its purpose to power financial inclusion, is adding a new line of credit to open access for credit challenged consumers. While credit options are abundant for some consumers, others find themselves with limited opportunities to access credit. The new Pathward Line of Credit can provide credit solutions to an underserved population in a responsible way. In addition to the appeal of credit access, consumers really find value in the flexibility of the line of credit because they can move the funds to their core spending account.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230620101276/en/
Pathward has engaged fintech partner, Propel Holdings Inc. (“Propel”) (TSX: PRL), to service the loans through its lending as a service (LaaS) platform. Propel is an innovative financial technology company (fintech) dedicated to credit inclusion, and by leveraging the fintech’s experience and AI-powered, proprietary platform, the program enables Pathward to provide consumers access to credit while limiting credit risk. Powered by their proprietary technology, Propel manages customer service and outreach, applications, collections and more through its online platform.
“Creating financial access for individuals who often get overlooked by more traditional lenders by offering the Pathward Line of Credit aligns with our purpose,” said Pathward President Anthony Sharett. “We are thrilled to partner with Propel to bring this program to the market as a part of our Banking as a Service offering. Working together, we can provide eligible borrowers with year-round access to credit through a better alternative to high interest programs.”
The Pathward Line of Credit is a pre-approved option offered to consumers through Pathward’s existing partner distribution channels. This model enables existing partners to connect their customers to credit access they might not otherwise have. Borrowers only pay interest on the drawn amount when they sign up for Pathward Line of Credit, and there are zero fees affiliated with the product.
“Propel and Pathward are driven by a common mission to expand financial access to consumers. For Propel, this partnership marks the launch of our lending as a service product offering, a natural and critical evolution of our business. When we founded Propel, we saw the limitations of existing technology and service to the tens of millions of underserved consumers and have met our goal of building out a best-in-class AI-powered solution. We believe that this is the beginning of a strong partnership that will have real impact for consumers overlooked by traditional lenders,” said Clive Kinross, CEO of Propel.
Pathward®, N.A., a national bank, is a subsidiary of Pathward Financial, Inc. (Nasdaq: CASH). Pathward is a U.S.-based financial empowerment company driven by its purpose to power financial inclusion. Pathward strives to increase financial availability, choice and opportunity across our Banking as a Service and Commercial Finance business lines. The strategic business lines provide end-to-end support to individuals and businesses. Learn more at Pathward.com.
Propel is an innovative, online financial technology (“fintech”) company, committed to credit inclusion by providing and facilitating fair, fast and transparent access to credit with exceptional service using its proprietary online lending platform. Through its operating brands, Propel is focused on providing access to credit to underserved consumers who struggle to access credit from mainstream credit providers. Propel’s revenue growth and profitability have accelerated significantly over the past two years as Propel has been able to facilitate access to credit for an increasing number of consumers, helping them move forward in their credit journeys.