Financial institutions, digital brands and fintechs can embed the BuildCredit Loan into their digital experience quickly and let Array manage the licensing, regulatory compliance, underwriting, approval process, privacy, identity verification and reporting
Array, a financial innovation platform, introduced BuildCredit™ Loan, the industry’s first private-label installment loan product that can be embedded into a company’s digital experience with just a few lines of code and typically launched within weeks.
BuildCredit Loan is a turn-key solution for financial institutions, digital brands and fintechs to offer customers the opportunity to establish and build their credit score. The loaned 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 can be disbursed into other product offerings offered by Array’s clients such as a secured card or new account.
“Credit-builder loans are growing fast in popularity, but the considerable internal 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 companies because they can count on the expertise of BuildCredit and Array to manage the infrastructure, compliance and servicing while the company focuses on providing a seamless digital experience and extending the value they offer to their customers.”
When BuildCredit Loan is embedded, customers can sign up within the digital experience, set up automatic payments and accumulate savings. When the customer makes on-time payments, the customer can establish a positive credit history as they continue to make installment payments over time. As an example, a borrower without existing debt that has a credit score of 560 can see up to a 60 point increase (source: Targeting Credit Builder Loans Practitioner Guide, 2020).
“Millions of consumers each year enroll in high-cost financial services as a result of not having a credit history or a financeable 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-interest loan products and BuildCredit Loan takes the majority of the complexity out of the offering because we offer it as an end-to-end service.”
BuildCredit loans will be originated by an accredited bank and are serviced by BuildCredit LLC, a wholly owned subsidiary of Array. BuildCredit Loan is part of the Array financial innovation platform, and can be integrated with other Array products such as My Credit Manager and Offers 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 bureaus.
BuildCredit Loan is currently in a private Alpha phase. To learn more, visit our BuildCredit page. General availability is expected in early 2023.
About Array
Array is a financial innovation platform that helps digital brands, financial institutions, and fintechs get compelling consumer products to market faster. Our suite of private label offerings helps our partners drive revenue, 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.
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Contacts
Katherine Rappaport
press@array.com
