US lender Behalf strikes deal with community bank FinWise.
Fintech lending platform Behalf has announced a partnership with FinWise Bank. Behalf is a fintech lender which allows merchants to offer instant credit products to their business customers at the point-of-sale. Once approved, Behalf customers can use their credit line to fund purchases with a broad range of vendors. Behalf works with several thousand merchants, including Best Buy For Business and B-Stock.
FinWise Bank – which is a subsidiary of All West Bancorp – bills itself as a financial tech bank with a community heart. Its partnership with Behalf will allow the lender to expand its product offering and to serve more customers.
"FinWise Bank's depth of experience has already helped us harden our business practices and evolve our offering to improve clarity, consistency, and general alignment with financial marketplace expectations," explained Crystal Eastman, head of marketing at Behalf. "The partnership gives us access to a wealth of resources to shore up our risk management and compliance practices. With this foundation in place, we can now scale more quickly and welcome more different types of customers into our portfolio. We’ve always offered instant approvals in the purchase path up to $50k – we are now also offering custom underwriting for lines up to $250k."
Point-of-sale is quietly one of the hotter spots in fintech, with firms such as Kreditech and Klarna in Europe, Financeit in Canada and zipMoney in Australia all generating headlines and attracting significant investment over the past year. German consumer finance firm Kreditech, which offers a range of point-of-sale solutions to consumers, scored a €110m equity investment from PayU in May this year.
“Behalf’s talented people, technology, and acquisition channel will change the landscape of business lending” said David Tilis, VP of specialty lending at FinWise Bank.
Behalf has been in business since 2013, and is headquartered in New York with an additional office in Tel Aviv.
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.