The company said it will use these funds to launch artificial intelligence (AI)-driven services to help customers access credit and free banking services at a time when more than 44 million Americans are considered “credit-invisible” and have trouble accessing the traditional credit system.
“As a first step to helping close this gap, Credit Sesame has completed the acquisition of Zingo, a FinTech software services startup, enabling the company to integrate rent reporting services into its suite of financial wellness offerings in summer 2021,” the company said.
More than three-quarters of Credit Sesame members are renters, and the company says Zingo gives these customers a chance at greater “financial inclusion.” Using Zingo’s platform, Credit Sesame will collect, verify and report rental payments to the credit bureaus, helping customers build and improve their credit. Credit Sesame is also planning to launch a feature that lets consumers use cash to help them build and enhance their credit profile without a credit check.
“Creating access to better credit and finance is critical for financial prosperity for consumers in our country, and it’s enlightening to see major banks and the federal government also taking action,” said Adrian Nazari, CEO of Credit Sesame. “The impacts of the past year have only made those needs greater.”
Tuesday’s announcement also included the news that Credit Sesame’s debit account program, Sesame Cash, has surpassed one million users. The news comes a little less than one year after the company acquired the Canadian challenger bank STACK.
In an interview with PYMNTS’ Karen Webster last year, Nazari and STACK CEO Miro Pavletic said the deal was based on the integration of smart banking underpinned with advanced technologies and credit management to create financially strong, credit-savvy consumers.