Cross River Bank has reached an agreement with the Current fintech platform on cooperation within the framework of the project to launch a new loan product.
The partners reported that the new solution in the area of lending will be useful and profitable for 4 million customers of the fintech platform. The joint press release of the companies, which was published on Wednesday, August 23, contains information that the new financial product will increase the level of creditworthiness of consumers. Also, this solution will contribute to the creation of credit histories by clients applying a single expense balance, or changing the chronology of user activity through the mentioned tool.
As part of the cooperation project, the fintech platform will issue a secure payment card on the Visa network. This means of payment will be connected to the available balance of users’ expenses. This principle of operation is aimed at ensuring that consumers can create a credit history and at the same time minimize the likelihood of the impact of such a risk factor as arrears.
The press release of the partners indicates that at present it is the credit history that is unfavorable from the point of view of banks and companies of a similar profile that is a barrier to receiving funds for many clients of financial organizations. Also, this problem negatively affects the financial stability of millions of people who find themselves outside the space of full-fledged service from creditors.
Anthony Peculic, Head of Cards and Banking Services at Cross River, noted that this company at the conceptual level is among the supporters of the idea of the absolute need to expand the availability of financial services for low-income social groups.
The U.S. Consumer Financial Protection Bureau (CFPB) reported that currently, more than 26 million citizens in the United States do not have access to credit facilities. This fact is evidence of the need to scale financial services in terms of providing an opportunity to use it to a larger number of potential consumers.
Stuart Sopp, CEO and co-founder of Current, said that the partnership with Cross River will allow to use of the firm’s core technologies and launch an innovative secure payment card.
The press release contains information that credit-building uses the patented Cross River operating system based on the Application Programming Interface (API), banking infrastructure, and Current technology.
As we have reported earlier, Ohio-Based Peoples Bank Launches Credit Card Program.
