Pathward and Propel Collaborate to Provide Credit Access to Underserved Consumers

Pathward, a national bank, has joined forces with Propel, a FinTech company, to offer credit options to consumers who have limited access to credit, as stated by the PYMNTS. In a press release on June 20, Pathward announced that it would leverage Propel’s Lending-as-a-Service (LaaS) platform to service the loans.

Pathward’s President, Anthony Sharett, expressed excitement about the partnership, stating, «We are thrilled to partner with Propel to bring this program to the market as a part of our Banking-as-a-Service [BaaS] offering.» Sharett further added, «Working together, we can provide eligible borrowers with year-round access to credit through a better alternative to high-interest programs.»

The collaboration between Pathward and Propel has resulted in the introduction of the Pathward Line of Credit. This credit product enables customers to access a flexible line of credit, transfer the funds to their primary spending account, and pay interest only on the amount utilized.

Propel’s AI-powered platform plays a crucial role in mitigating credit risk, allowing Pathward to provide credit 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,» stated Propel CEO Clive Kinross. «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.»

PYMNTS research has highlighted the challenges faced by millions of Americans in accessing traditional credit options. This situation has opened up opportunities for FinTech companies to empower customers, improve their credit profiles, and expand the range of services they can qualify for.

Propel’s entry into the Canadian market, with its online credit offering called Fora Credit for underserved consumers, occurred approximately seven months prior to this partnership announcement. Pathward, formerly known as MetaBank, rebranded itself as Pathward in March 2022. The CEO of Pathward, Brett Pharr, explained the name change, stating, «Our new name serves as a constant reminder of the importance of creating a path forward for the unbanked, underbanked, and underserved to help them achieve economic mobility.»

The collaboration between Pathward and Propel aims to address the credit needs of underserved consumers. By leveraging Propel’s LaaS platform, Pathward offers a flexible line of credit, ensuring more accessible and affordable credit options. This partnership aligns with the growing trend of FinTechs empowering consumers to improve their creditworthiness and expand their financial opportunities.