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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
Ivankovich is taking the reigns from former CEO John Deignan.
Ivankovich founded iLendx and oversaw Fiserv’s lending and deposit software products and services division.
Small business lending solutions provider Baker Hillannounced this morning it has appointed Andy Ivankovich as its new CEO. Ivankovich takes the place of John Deignan, who has served as Baker Hill CEO since 2017.
Baker Hill tapped Ivankovich for his background in lending technology. After serving in the U.S. Air Force, he spent his early career managing a $14 billion lending portfolio as a product executive with USAA. During his time as a banker, he developed and was named as inventor on USAA’s lending technology patents. Ivankovich went on to become the founder of iLendx, which he sold to Fiserv in 2018. After the acquisition, he stayed on to oversee Fiserv’s lending and deposit software products and services division.
“I am truly honored to be appointed Baker Hill’s Chief Executive Officer and look forward to building upon the strong foundation Baker Hill has built over its 40-year history,” said Ivankovich. “Baker Hill is consistently recognized as a leading fintech company with world-class products. The team has cultivated a reputation for driving innovation in lending for banks and credit unions to better serve their communities. I am proud to join this team of experts and look forward to leading Baker Hill through its next stage of growth and ushering in a new era of innovation for our clients.”
In his new role, Ivankovich aims to promote innovation across the company’s product suite to ultimately enable financial institutions to modernize their lending operations.
“Andy has demonstrated forward-thinking leadership throughout his career, and he is well-acquainted with Baker Hill’s mission,” said Chairman of the Board for Baker Hill and former CEO of Wolters Kluwer Financial and Compliance Services Brian Longe. “His product and client focused approach, entrepreneurial background, and forward-thinking innovation make him an excellent choice to lead Baker Hill.”
Founded in 1983, Baker Hill offers banks and credit unions a SaaS solution for commercial, small business, and consumer loan origination, as well as risk management tools. The company, which most recently demoed at FinovateFall 2021, has recently formed partnerships with Harmony Bank, Union Bank, and Amalgamated Bank.
Last spring, Baker Hill agreed to be acquired by private equity firm Flexpoint Ford for an undisclosed amount. The acquisition offered Baker Hill access to Flexpoint’s resources and expertise, including its experienced team and capital to fund ongoing product innovation and acquisitions.
We’re midway through August, and while everyone attempts to sneak in their final summer vacation days, the fintech news continues on. While we’ve seen a handful of acquisition news headlines so far this summer, I expect things to tick up slightly this fall. Stay tuned throughout the week to read the latest news this week as we post updates and evolutions.
LianLian Global has tapped Thredd to help it launch a virtual card program in the APAC market.
Thredd will power LianLian’s Yueda virtual card product.
The news comes weeks after Thredd initiated partnerships with TerraPay and Spendbase.
Digital payment solutions company Threddannounced a partnership with global payments company LianLian Global to help the Singapore-based company launch its virtual card program in the APAC market.
LianLian, which specializes in cross-border settlement services with instant payouts, selected Thredd to power its Yueda virtual card product. Designed to facilitate cross-border payments and financial management for businesses, Yueda provides comprehensive payment services, including multi-currency support, payment collection, and fund transfers, tailored specifically for the needs of businesses in a range of industries, including e-commerce, international B2B trade and travel, engage in international trade and commerce.
Founded in 2007 and headquartered in London, Thredd offers digital payment solutions to help businesses simplify financial transactions. In addition to the virtual card service that LianLian will use, Thredd also delivers card issuance, payments processing, card controls, risk and fraud, digital wallets, and cross-border payments solutions.
“Utilising Thredd’s virtual card issuing capabilities we will be able to deliver on our ambitious growth plans for 2024 and beyond,” said LianLian Global Co-CEO Tim Shen. “We have already secured payments licenses covering eight [regions], including mainland China, China, Singapore, the U.S., the U.K., Luxembourg, Thailand, and Indonesia. We are delighted to find a partner in Thredd who can support us with virtual cards that will ensure that no matter where a client needs to send a payment, it will be supported. Access to a local team of experts who speak our language has made the implementation and ongoing operations seamless.”
Today’s announcement comes after Thredd partnered with TerraPay in June to support virtual card payments for the travel industry. Thredd has also recently launched in the U.S., having secured its second U.S. client, Spendbase, in June.
The deal is set to close for $61 million in cash and may include an extra $20 million in contingent funds and restricted stock units, depending on conditions.
Payoneer plans to integrate Skuad’s payroll and contract management solutions into its own offerings.
Hours after I published a piece highlighting summer acquisition activity in fintech, I woke up to this news: global digital commerce company Payoneerannounced today that it has acquired HR platform Skuad.
While the purchase is slated for $61 million in cash, it could close for as much as $81 million. That’s because Payoneer may also pay an additional $10 million, contingent on Skuad’s performance metrics, and offer $10 million in restricted stock units, depending on key employee vesting.
“To accelerate our evolution and B2B momentum, we are excited to announce the acquisition of Skuad and welcome to Payoneer the talented entrepreneurs who share our vision of supporting global SMBs,” said Payoneer CEO John Caplan. “We are combining the strength and reach of Payoneer with Skuad’s comprehensive global workforce and payroll solutions to create a powerful platform that will enhance our customers’ ability to expand their teams worldwide and grow globally.”
Skuad was founded in 2019 to help businesses automate payroll management, local compliance, and taxation of their employees. The Singapore-based company, which has raised $19 million, helps businesses compliantly hire employees across more than 160 countries. Skuad also assists its clients in global payroll, allowing their employees to receive payment in their choice of 100+ currencies.
Founded in 2005, Payoneer offers multi-currency accounts and payment services to two million businesses across 190 countries. With a mission to “democratize access to financial services and drive growth for digital businesses of all sizes from around the world,” Payoneer helps users pay, get paid, and manage funds on a global scale. The company also offers working capital– providing advances to Amazon and Walmart sellers, as well as to small businesses.
Payoneer, which plans to integrate Skuad’s payroll and contract management offerings into its own, announced the acquisition of Skuad in an earnings announcement this week. Also during that call, Payoneer revealed a record revenue of $240 million, which is up 16% from last year’s figure.
“Twenty-five percent of Payoneer’s B2B customers are asking for enhanced workforce management capabilities, including payroll, employer of record and contractor management capabilities — so there is significant cross-sell potential with this acquisition,” the company said in a news release.
Payoneer went public via a SPAC merger with FTAC Olympus Acquisition Corp. in 2021. The company listed on the NASDAQ in June of that same year under the ticker PAYO and has a current market capitalization of $2.41 billion.
The summer heat usually comes with a slowing of news activity, and while this is generally still holding true this summer, there have been some notable merger and acquisition activity throughout the past few months.
This season, the fintech landscape has had its fair share of strategic moves, as companies look to expand their capabilities, enter new markets, and expand on their offerings. These acquisitions are not just reshaping individual companies but they are also working to build out what the future of financial technology will look like.
As venture capital funding has dwindled over the past few years, the fintech sector has had to get creative in staying afloat. That may be one reason why we are seeing a growth in deal numbers. Let’s dive into the top 10 fintech acquisitions so far this summer.
Pluto acquired by Robinhood
Robinhood, a commission-free trading platform that aims to democratize finance acquiredPluto, a fintech startup focused on personalized financial planning and investment tools.
Deal Details: Financial terms were not disclosed. The deal is expected to close in Q3 2024.
Impact on Industry: The deal may encourage other trading platforms to improve their advisory services, increasing competition.
Future Outlook: Integrating Pluto’s technology will help Robinhood offer personalized financial advice, boosting user engagement and retention.
Theorem acquired by Pagaya
Pagaya, an AI-driven asset management firm that focuses on portfolio optimization through machine learning and big data acquiredTheorem, a provider of financial analytics and modeling tools.
Deal Details: The specific financial terms of the deal remain confidential.
Strategic Rationale: Theorem will strengthen Pagaya’s AI and data analytics capabilities, resulting in robust investment strategies.
Impact on Industry: Pagaya’s purchase highlights the importance of AI in asset management, pushing competitors to innovate.
Future Outlook: Pagaya’s platform will demonstrate enhanced analytical power, offering more value to institutional clients.
Aion Bank acquired by UniCredit
UniCredit, a leading European commercial bank that offers a wide range of banking services, acquiredAion Bank, which is known for its digital banking services and innovative financial products.
Deal Details: Financial details of the deal were not disclosed.
Strategic Rationale: Aion Bank will help UniCredit expand its digital banking capabilities and customer base.
Impact on Industry: The deal will help to increase competition in digital banking, driving more customer-centric services.
Future Outlook: Integrating Aion Bank’s technology will enhance UniCredit’s digital offerings and expand its market reach.
Envestnet acquired by Bain Capital
Bain Capital, a private investment firm that focuses on private equity, venture capital, and credit, acquiredEnvestnet, a provider of integrated portfolio, practice management, and reporting solutions.
Deal Details: The deal is valued at approximately $4 billion.
Strategic Rationale: Envestnet’s long-standing expertise will help Bain Capital enhance its capabilities in financial technology and wealth management solutions.
Impact on Industry: The move will bring Envestnet into the private sector.
Future Outlook: Bain Capital’s acquisition may fuel demand for other private equity firms to buy out wealth management fintechs.
Salt Labs acquired by Chime
Chime, a digital bank known for providing fee-free banking services, acquiredSalt Labs, an employee savings and rewards program.
Deal Details: Financial terms were not disclosed, but some sources report that the deal could close for as much as $173 million after Chime provides an up-front payment of $14 million.
Strategic Rationale: Salt Labs will enhance Chime’s offerings by integrating employee savings and rewards programs.
Impact on Industry: Integrating Salt Labs will help Chime promote financial wellness and engagement among employees, setting a new standard for digital banking services.
Future Outlook: The combination of Salt Labs with Chime Enterprise will expand Chime’s client base through employer channels.
Rooam acquired by American Express
Financial services giant American Express has acquiredRooam, a mobile payment and digital tipping platform for the hospitality industry.
Deal Details: Financial specifics were not disclosed.
Strategic Rationale: American Express is expected to expand its mobile payment capabilities in the hospitality sector.
Impact on Industry: The purchase will fuel demand for more innovation in mobile payment solutions that increase convenience for users and businesses.
Future Outlook: Integrating Rooam’s technology will improve American Express’s digital payment offerings and customer experience.
Strategic Rationale: Funding Circle will expand iBusiness Funding’s lending capabilities and customer reach.
Impact on Industry: The move will help strengthen small business lending options, ultimately supporting economic growth and entrepreneurship.
Future Outlook: Integrating Funding Circle’s platform into iBusiness Funding will enhance iBusiness Funding’s lending solutions and expand its market reach.
Invoiced acquired by Flywire
Flywire, a global payments enablement and software company, acquiredInvoiced, an accounts receivable automation platform.
Deal Details: Financial specifics were not disclosed.
Strategic Rationale: Invoiced is expected to enhance Flywire’s payment solutions by adding advanced accounts receivable automation.
Impact on Industry: The deal promotes efficiency in payment processing and receivables management solutions.
Future Outlook: Flywire will benefit from integrating Invoiced’s technology, which will offer comprehensive payment and receivables solutions and improving cash flow management.
Screena acquired by ThetaRay
ThetaRay, a provider of AI-powered transaction monitoring technology, has acquiredScreena, a cybersecurity firm specializing in fraud detection and prevention.
Deal Details: Financial terms were not disclosed.
Strategic Rationale: The deal will strengthen ThetaRay’s fraud detection capabilities with Screena’s advanced cybersecurity technology.
Impact on Industry: The move enhances current fraud prevention measures, which will increase security in financial transactions.
Future Outlook: Integrating Screena’s technology will improve ThetaRay’s AI-driven fraud detection and prevention solutions.
LemonSqueezy acquired by Stripe
Financial infrastructure platform StripeacquiredLemonSqueezy, a platform for managing digital product sales and subscriptions.
Deal Details: Financial terms were not disclosed.
Strategic Rationale: LemonSqueezy will expand Stripe’s capabilities in digital product sales and subscription management.
Impact on Industry: The deal will promote innovation in digital commerce, providing businesses with more comprehensive tools.
Future Outlook: Stripe will enhance its existing offerings with LemonSqueezy’s capabilities, further supporting digital entrepreneurs.
NCR Voyix is selling its digital banking business to private equity firm Veritas Capital.
The deal is expected to close by the end of 2024 for $2.45 billion in cash plus a future contingent installment of up to $100 million.
NCR Voyix, which recently split from NCR, expects the move will help it focus on its core software and services offerings for restaurants and retailers.
Digital commerce provider NCR Voyix is simplifying its operations this week. The Georgia-based fintech has agreed to sell its cloud-based digital banking business to an affiliate of private equity firm Veritas Capital. Under the terms of the agreement, NCR Voyix will sell its digital banking unit for $2.45 billion in cash plus a future additional installment of up to $100 million, contingent on terms.
The deal is expected to close by the end of 2024.
NCR Voyix launched its digital banking platform in 2014 and has since evolved significantly. The banking suite aims to offer its 1,300 financial institution clients a comprehensive banking environment for their 20 million active retail and commercial banking customers. For retail banking, NCR Voyix provides online and mobile banking, personal financial management, and customer engagement tools. For commercial banking, the platform includes services such as cash management, treasury services, and business banking solutions.
“Our Digital-First solution suite has been strategically designed to grow and expand with our customers over time as their retail and business banking distribution and customer engagement strategies evolve,” said NCR Voyix Executive Vice President and President of Digital Banking Brendan Tansill. “Veritas brings a proven track record of successfully executing similar business carveouts and subsequently driving growth. We look forward to working alongside their experienced team as we continue to pursue commerce and banking innovations that help our customers and their users succeed.”
Veritas’ CEO and Managing Partner Ramzi Musallam said that NCR Voyix’s digital banking platform shows “significant runway for growth.” He added that the purchase represented a significant opportunity to invest in a solution that will empower a range of financial institutions.
For NCR Voyix, the deal is a byproduct of efforts to streamline its operations to focus on its core software and services offerings for restaurants and retailers. The move comes after NCR separated its ATM-focused business from its digital commerce operations in October of 2023.
The company will use the proceeds of today’s deal to accelerate select financial objectives, including de-levering its balance sheet, which will allow for greater strategic investment in NCR Voyix’s core businesses. As company CEO David Wilkinson explained, “This transaction allows us to drive value for our shareholders by strengthening our financial position and focusing on our core restaurant and retail customers.”
Founders are what make the fintech world go around. Without their grit, willingness to take risks, desire to enhance the status quo, and determination to bounce back after failure, fintech wouldn’t be here.
At FinovateSpring earlier this year, we spoke with four fintech leaders– Robbie Heeger, President and CEO and Endaoment; Alexandra McLeod, CEO and Founder at Parlay Protocol; Gwyneth Borden, Founder and CEO and Remynt; and Christian Widhalm, CEO and Bloom Credit– shortly after they stepped off the Finovate demo stage. We asked each of them for advice on pitching a product through a demo approach, refining presentations, and communicating their company’s value proposition.
Lessons from Finovate – Shaping your fintech showcase approach
Evolution through Feedback – Refining Fintech Presentations for Future Success
Unlocking Demo Success – Key Strategies for Communicating Fintech Value Propositions
PayPal is launching Fastlane, a one-click guest checkout experience for online merchants.
Fastlane automatically recognizes shoppers based on their phone number or email address, and autofills information forms in the checkout flow.
PayPal first unveiled Fastlane in January, and has been testing the solution with select merchants and ecommerce sites, including BigCommerce.
Fintech pioneer PayPal is launchingFastlane, its guest checkout tool, for all U.S. merchants this week. Fastlane aims to accelerate the guest checkout experience to help users complete their purchase in as little as one click.
Merchants can integrate Fastlane into their existing online checkout flow to create a simpler, faster checkout experience for the 43% of consumers who prefer a guest checkout experience. By using the customer’s email, Fastlane recognizes shoppers early in the guest checkout process and allows them to access their saved information with a one-time passcode sent via email. After entering their passcode, users can autofill the information in the checkout flow and complete their purchase in as little as one click.
When Fastlane does not recognize a shopper, it allows them to create a Fastlane profile by opting in during their purchase process, enabling faster transactions in the future.The tool does not require users to fill out forms or remember passwords.
“Fastlane by PayPal significantly reduces the time consumers spend using guest checkout – making for a more seamless checkout experience,” said PayPal President and CEO Alex Chriss. “With Fastlane, we are bringing an accelerated guest checkout to businesses of all sizes helping them to drive more sales.”
PayPal unveiled Fastlane in January and has since tested the technology with select businesses, including merchant SaaS provider BigCommerce, which is among the first ecommerce sites to test PayPal’s Fastlane. Over the past several months of trialing the technology, BigCommerce saw a 32% reduction in time it took for customers to check out. Additionally, as company CEO Brent Bellm noted, “Results from early-adopting test customers show that Fastlane users convert more than 80% of the time, which is up to a 50% improvement over guest shoppers who do not use Fastlane. For BigCommerce enterprise customers using PayPal, the Fastlane experience further improves on our checkout conversion rate of 71%.”
Fastlane is available for U.S. merchants on PayPalComplete Payments and PayPal Braintree, as well as via platforms including Adobe Commerce, BigCommerce, Salesforce Commerce Cloud, and others.
Ready to level up your networking game at FinovateFall? We’re here to help! At FinovateFall 2024, which is taking place September 9 through 11 in New York, we’re launching a new, personalized meeting platform called LevelUp.
Introducing LevelUp
LevelUp, Finovate’s new meeting program, is designed to help banks and financial institutions participate in tailored, valuable meetings. The goal of the meetings is to help our financial institution attendees efficiently find providers offering solutions that suit their requirements and ultimately meet critical business needs.
Seamlessly Integrated
LevelUp will be embedded into the FinovateFall agenda. We will offer time slots throughout the event to allow you to meet six solutions providers in an efficient, quickfire meeting format. To ensure you are meeting with companies offering real solutions to your challenges, we have hand-selected the best fintechs to optimize your time.
How It Works
Personalized Matches: Upon registering for FinovateFall, you’ll have the opportunity to detail your specific business challenges and needs. Our platform will then match you with the most relevant fintech providers.
Efficient Scheduling: LevelUp slots are strategically placed within the event agenda, ensuring that you have ample time to participate without missing other key sessions and presentations.
Focused Interactions: Each meeting slot is designed to be quick and focused, allowing you to get straight to the point and determine if the provider’s solution is right for your institution.
Why LevelUp?
Targeted Networking: Meet only with providers who are pre-vetted and matched to your specific needs, saving you time and effort.
Optimized Agenda: The seamless integration of LevelUp within the event schedule ensures that you maximize your time at FinovateFall.
Enhanced Collaboration: By focusing on relevant matches, you can build meaningful partnerships that drive real business results.
Join Us at FinovateFall 2024
Don’t miss out on this opportunity to revolutionize your networking experience. Whether you’re looking to explore new fintech innovations, solve specific business challenges, or simply expand your professional network, LevelUp is here to make it happen.
Register now for FinovateFall 2024 and take the first step towards leveling up your networking game. We can’t wait to see you there!
Bilt Rewards received $150 million in a funding round led by Teachers’ Venture Growth.
The new round brings the company’s total funding to $710 million.
The funding comes six months after Bilt Rewards’ January investment round, which valued the company at $3.1 billion.
Bilt Rewards, a rewards program that allows renters to earn points for paying rent on time, announced it has received $150 million in funding this week. The venture round was led by Teachers’ Venture Growth, while existing and new investors, such as Vanderbilt University Endowment and the University of Illinois Foundation, also participated.
Bilt Rewards was founded in 2021 to help landlords collect on-time rent payments by incentivizing residents with tailored benefits. In addition to rewarding on-time rent payments, Bilt’s platform also offers rewards when residents spend at partner merchants, enabling merchants to drive more business from local customers and acquire new customers as new residents move to the area. The company will use today’s investment to further expand its neighborhood loyalty program with merchants across the U.S.
“Bilt Rewards has created a unique loyalty program to empower renters,” said Teachers’ Venture Growth Senior Managing Director Rick Prostko. “We’ve seen the positive reaction from both customers and all those involved as part of their ecosystem. We are excited about the opportunity to work with Ankur and the full management team and find ways to support them as a value-add partner.”
Today’s investment, which boosts Bilt’s total funding to $710 million, comes about six months after Bilt’s last investment round led by General Catalyst and Eldridge. The $200 million raise, which closed in January, valued the company at $3.1 billion. As part of the January round, Bilt appointed Ken Chenault, former American Express CEO, as company chairman.
“In January, we recognized Bilt’s unique capture of loyalty in the previously untapped rental payments space,” said Chenault. “Today, Bilt is rapidly becoming the leading platform for driving neighborhood commerce. By connecting residents, property owners, and local businesses, we’re creating a powerful ecosystem that benefits all parties involved.”
Bilt Rewards is currently partnered with seven of the 10 largest multifamily housing owners in the country. The fintech, which is expanding to single-family homes and condominiums, plans to scale its resident loyalty program to include mortgage payments later this year.
“This funding accelerates our vision of rewarding Americans for how they live and spend in their communities,” said Ankur Jain, CEO of Bilt Rewards. “We’re rapidly growing our neighborhood loyalty program, expanding into essential categories like healthcare, gas, and groceries. With members in all 50 states, we’re building a comprehensive platform that benefits residents, property owners, and local businesses across the country.”
B2B payments facilitator Monto is exiting stealth with a $9 million funding round.
The Seed funding round was led by Scale Venture Partners.
The company plans to use the funds to scale its growth in the U.S.
There’s a new entrant in the B2B payments space. B2B payments facilitator Montoemerged from stealth this week, simultaneously announcing a $9 million Seed round.
Scale Venture Partners led the investment, while Verissimo Ventures, F2 Venture Capital, Firsthand Alliance, Room40 Ventures, and individual investors also participated. “Our investment in Monto is the result of years of work focusing on the CFO suite and the intersection with procurement. We are very well aware of the evolution of and pain points in this trillion-plus dollar market,” said Scale Venture Partners’ Alex Niehenke. “Monto is the only company that solves the one-off workflow problem for AR teams. It is the missing piece for any AP platform, without it, suppliers suffer.”
Monto will use today’s funds to further invest in technological improvements, as well as to fuel its U.S. expansion. As a starting point, the company is opening its first U.S. office in New York City.
Founded in Tel Aviv, with offices throughout the globe, Monto seeks to help make ACH and RTP B2B payments collection as easy as tapping a card. Business finance teams can use the company’s payments tool to receive payments from their customers’ third-party payment platforms, AP portal, or supplier portal, including Workday, QuickBooks, SAP, and Microsoft Dynamics. The payments simplification helps companies reduce Days Sales Outstanding (DSO) and eliminate manual work by consolidating financial data from numerous sources.
Monto’s clients include large enterprises from various industries, including Shutterstock, TechTarget, Miro, and G2. Since launch, the company has helped its customers facilitate nearly $1 billion to buyers in more than 300 portals.
Monto’s founders, Maya Cohen and Nitsan Yerushalmi, previously worked implementing ERP systems in finance departments. “Monto is a strategic decision for CFOs, future-proofing them against a landscape where most, if not all, customers will soon use portals,” said Cohen, who now serves as the company’s CEO. “With Monto, getting paid by customers will be fully automatic, a concept we call ‘zero-touch,’ and we succeed in achieving that by working with, not against, the portals, an important distinction.”
equipfi is launching Plan Your Purchase, a BNPL solution that offers consumers financing for their purchase before they make the transaction.
Consumers can use Plan Your Purchase to take out loans ranging from $500 to $2,000.
Plan Your Purchase is integrated directly into a bank’s existing digital banking app, offering more control over the user experience.
BNPL-as-a-Service provider equipfiunveiled a new solution this week called Plan Your Purchase. The new tool empowers banks and credit unions to allow their account holders to take out pre-qualified installment loans from their bank before they make a purchase.
equipfi calls Plan Your Purchase a “pre-purchase BNPL solution,” meaning that the bank offers the consumer financing for their purchase before they make the transaction. Plan Your Purchase is integrated into a bank’s existing digital banking app to provide personalized BNPL offers directly to the customers. This makes it easy for users to get the financing they need to make a qualified purchase without a credit check, additional applications, new logins, upfront cost, or dependency on merchant integration.
Using Plan Your Purchase, pre-approved consumers can take out loans ranging from $500 to $2,000. The consumer can view and accept the loans immediately, and the funds are available within moments.
“There are many moments in an account holder’s lifetime when timely access to small loans make a big difference,” said Bryce Deeney, co-founder and CEO of equipifi. “By streamlining the loan acceptance process and positioning it in the digital banking experience, Plan Your Purchase helps financial institutions give account holders access to cash flow they already qualify for wherever and whenever they need it.”
By delivering the tool through banks, equipfi puts the bank in control, allowing them to leverage consumer data to provide more personalized offers. Putting the bank in the driver’s seat also allows the bank to control credit pre-approvals to suit their own risk tolerance and offers them more control over the user experience.
The integrated approach also can help banks maintain their top-of-wallet position by offering split payments using existing debit cards. This is different from traditional BNPL providers, which rely on a credit-focused approach. This integration can also help banks drive engagement and loyalty by leveraging transaction data to generate personalized offers and streamline the user experience within their familiar banking app.
Arizona-based equipfi was founded in 2021 to bring the benefits of BNPL financing directly to banks and credit unions. Among the company’s clients are Kane County Teachers Credit Union in Illinois, SunWest Credit Union in Colorado, FedFinancial Federal Credit Union in Washington, D.C., and Eagle Community Credit Union, which is one of the first to go live with Plan Your Purchase.
