Array launches Credit Builder loans as a service
NEW YORK–(BUSINESS WIRE)–arraya financial innovation platform, introduced BuildCredit™ Loan, the industry’s first private-label consumer loan product that can be embedded into an organization’s digital experience with just a few lines of code and typically be up and running in weeks.
BuildCredit Loan is a turnkey solution for financial institutions, digital brands and fintechs to provide customers with the ability to assess and build their creditworthiness. The borrowed funds are held as collateral and payments are reported to the credit bureaus as an installment account. When the loan is repaid, the loan proceeds are returned to the customer or may be paid into other product offerings offered by Array’s customers such as B. a secured card or a new account.
“Credit builder loans are growing in popularity, but significant in-house development time and resources have prevented many banks and digital brands from moving forward,” said Darryl Eaton, general manager at Array. “BuildCredit Loan is an ideal solution for many businesses as they can rely on BuildCredit and Array’s expertise to manage infrastructure, compliance and maintenance while the business focuses on delivering a seamless digital experience and value , which it offers its customers.”
With BuildCredit Loan embedded, customers can opt-in, set up automatic payments and collect savings within the digital experience. If the customer makes payments on time, the customer can build a positive credit history as they continue to make installment payments over time. For example, a borrower with no existing debt and a credit score of 560 may see an increase of up to 60 points (Source: Targeting Credit Builder Loans Practitioner’s Guide, 2020).
“Millions of consumers sign up for expensive financial services each year because they don’t have a credit history or a fundable credit score,” said Martin Toha, CEO and co-founder of Array. “BuildCredit Loan is the first private label installment loan product for financial institutions, fintechs and digital brands. It’s a compelling alternative to high-yield lending products, and BuildCredit Loan takes most of the complexity out of the offering because we offer it as an end-to-end service.”
BuildCredit loans are originated by an accredited bank and serviced by BuildCredit LLC, a wholly owned subsidiary of Array. BuildCredit Loan is part of Array’s financial innovation platform and can be integrated with other Array products such as My credit manager and Provides engine. Array provides the financial institutions, digital brands and fintechs with the user interface, software components, customer support, payment processing and reporting to all three offices.
BuildCredit Loan is currently in a private alpha phase. To learn more, visit our BuildCredit Side. General availability is expected in early 2023.
Array is a financial innovation platform that helps digital brands, financial institutions and fintechs bring compelling consumer products to market faster. Our range of private label offerings help our partners increase sales, increase engagement and empower millions of consumers to achieve their financial goals. Array was founded in 2020 by Martin Toha and Phillip Zedalis. Investors include Battery Ventures, General Catalyst and Nyca Partners. To learn more, visit array.com.