Credit Score

LSC invests in Fintech app for underserved members

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LSC said it has invested in fintech Cambio, a mobile banking and financial recovery app, to provide underserved consumers with access to banking services.

The partnership asks Chicago-based Cambio to use LSC’s payments and banking services to serve as a fintech’s registrar, card issuer and processor.

“We invested in Cambio because of their goal of providing underserved access to banking services,” said Tom Kane, CEO of LSC and the Illinois Credit Union League. “Their mission aligns directly with LSC’s core mission, and we pride ourselves on being the banking home of the underserved. “

Headquartered in Naperville, Ill., LSC serves more than 2,300 credit unions in 50 states.

The partnership provides Cambio members with access to thousands of free ATMs, cash deposits at thousands of retail stores, and free bill payments.

Cambio also offers an exclusive alternative credit score through a financial skills program.

The skills program allows members to build credit, get out of debt and save money. As their skills grow, their Cambio score also increases. Each activity also comes with rewards, which can be redeemed for cash, allowing members to earn as they learn. The Cambio score also allows members to access credit opportunities such as loan refinancing and secured credit cards.

“Our members are eager to change their financial situation, we are just giving them the skills and tools to do it,” said Blesson Abraham, CEO and Founder of Cambio. Cambio is for people with damaged credit who just need a tell me what to do app for their finances. “

After the pandemic began last year, about 21% or 48 million Americans had their credit applications rejected because their credit scores were deemed too low by lenders, credit card companies, or credit unions. owners, according to a Bankrate survey.

Additionally, more than 5%, or 7.1 million US households, are unbanked, according to a 2019 FDIC research study. The main reasons households without a bank account are unable to meet minimum balance requirements, don’t trust banks, privacy, and bank account fees are too high or too unpredictable, the FDIC study showed.

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