MetaBank, a wholly-owned subsidiary of Meta Financial Group, has signed an agreement with CURO Group Holdings to launch a new line of credit product to underbanked consumers in the US.
Both the partners are expected to unveil a new, joint brand and a deadline for the pilot launch later this year.
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The credit option will enable underbanked consumers to avail credit with a flexible timeframe for repayment.
Additionally, the companies will start charging fees only when credit is drawn the customer.
According to an estimate, approximately 67 million adults are considered un- or underbanked. This product is likely to offer a responsible credit option for many of those consumers.
MetaBank head of consumer lending Brent Turner said: “This relationship expands Meta’s longstanding commitment to serving consumers across the credit spectrum.
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By GlobalData“We believe Meta’s experience in specialty consumer lending and payments products, combined with CURO’s 20 years of proven experience providing credit to underbanked consumers, will result in a product and platform that drives innovation, transparency and responsible credit to the market.”
Meta expects to hold up to $350m in product receivables on its balance sheet during the first three years of the agreement with CURO.
MetaBank said that the agreement is part of its ongoing expansion into consumer lending, after the company acquired a platform that offers a solution for marketplace lending, including underwriting and loan management in 2016.
