For all the recent advances made in the world of financial technology, for large numbers of consumers the fruits of fintech are still woefully out of reach. According to Experian data, almost a third of Americans have a credit score low enough to lock them out of critical purchases and investment opportunities.
That’s exactly the problem that’s being addressed by fintechs like Bond Financial Technologies, which just announced the release of a new Credit Builder Card program. With this Mastercard-backed card, partnered fintechs and other brands will be able to offer secured credit cards to users who otherwise would be denied valuable financial access.
“Historically, access to credit has been challenging — 40% of subprime scores are represented by millennials — but advances in embedded finance are fundamentally changing this dynamic,” said Bond’s Chief Executive Officer and Co-Founder, Roy Ng. “Bond’s Credit Builder Card allows brands to offer a new, high-value financial product directly to their customers at a time when they may need it most. Consumers who build up a strong credit history will qualify for a traditional credit card and the ability to take out an auto loan or mortgage at better interest rates.”
According to Bond, users of the new Credit Builder Card will have access to better rates for credit purchases. More importantly, this product will give them the opportunity to develop a solid credit score moving forward.