WebBank will invest up to $250m into digital financial solution developer Avant, as part of a securitisation deal.
The funds are secured by credit card receivables. WebBank’s investment will be applied over a three-year revolving term.
With the funds, Avant hopes to meet the demand and growth of the Avant Mastercard Credit Card, which is issued by WebBank.
Avant claims to offer a credit card that brings people closer to their goals. Its platform helps people build credit scores with credit limits from $300 – $3,000. Its services include personal loans, credit cards and mobile banking services.
Avant CEO Matt Bochenek said, “WebBank and Avant have partnered closely over the last almost decade to expand access to affordable, transparent financial products, and together to help move our customers’ financial lives forward.
“Deepening our partnership through this relationship will allow us to facilitate access to credit cards for hundreds of thousands of additional underserved customers over the next three years.”
WebBank is an issuer of consumer and small business credit products through strategic partner platforms, which include retailers, manufacturers and more.
Earlier in the year, healthy lifestyle reward credit card Ness recently collected $15.5m alongside the official launch of its first product, Ness Rewards App. This app lets consumers earn points for spending on healthy products.
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