The credit card provider for middle-class Americans, Mercury Financial, has announced the successful closure of a $200m debt facility.
Aiming to drive growth in their business, the debt facility comes courtesy of funds managed by Neuberger Berman.
The newly acquired funding of $200m was sourced from client funds managed by Neuberger Berman. This significant financial boost is aimed at furthering the expansion of Mercury’s credit card business, targeting middle-class Americans who are often overlooked by conventional banks.
In providing financial services, Mercury utilises an innovative business model. Leveraging proprietary data and over 100 million data points, the company is able to better identify and underwrite their customers, aiming to provide a prime credit card experience. The usage of its patent-pending digital toolset, notably its oculus mobile app, allows Mercury to engage effectively with its customers while promoting healthy credit use.
With the new injection of funds, Mercury plans to initiate additional credit card accounts and expand its existing cardmember relationships. Furthermore, it intends to innovate new capabilities to enhance customer experience, thereby fulfilling its mission of improving the financial lives of middle-class Americans.
Mercury’s current reach extends to 36 million middle-class Americans, a demographic largely ignored by traditional banks and non-bank lenders alike. The company’s CFO, Jason Whiting, pointed out the regulatory limitations faced by banks and high fee products of subprime lenders that often lead to continued financial stress.
Mercury Financial CEO James Peterson stated, “By analysing financial data the right way, we can better assess risk and help more qualified Americans better manage their credit. We are committed to improving the financial lives of our customers. Neuberger Berman believes in our mission and their partnership will help us reach more underserved Americans, the bedrock of the US economy.”
The equity partner since its inception in 2017, Värde Partners, also expressed its support for Mercury’s mission. Aneek Mamik, Partner at Värde Partners, said, “Mercury Financial is driving expanded access to credit and financial inclusion to many underserved Americans.”
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