The credit-building product will enable Current members to establish or rebuild their credit histories through a single spending balance, the companies said in a Wednesday (Aug. 23) press release. Cross River will issue a secured charge card on the Visa network, which will connect to members’ available spending balance. This approach aims to build credit history while minimizing the risks associated with debt.
The credit history problem limits access to credit and financial stability for millions of underserved individuals, according to the press release.
Anthony Peculic, head of cards and banking-as-a-service at Cross River, emphasized the company’s commitment to expanding access to financial services for underserved communities.
The need for such a credit-building product is evident, as the Consumer Financial Protection Bureau (CFPB) reported that over 26 million Americans are “credit invisible” and another 19 million are “unscorable,” according to the press release.
Stuart Sopp, CEO and co-founder of Current, said in the release that the partnership with Cross River will leverage their core technology and launch an innovative secured charge card. Sopp added that together, they can provide millions of Americans with a simple way to build their credit histories and improve their financial futures.
The credit-building card uses Cross River’s proprietary, application programming interface (API)-based operating system and banking infrastructure, along with Current’s core technology, to promote financial inclusion and economic empowerment for underserved communities, according to the press release.
Offering customers the banking services they need — exactly when and where they need them — is a growing brand necessity, Peculic told PYMNTS in an interview posted in August 2022.
“What we see is, in order to be an effective partner for our customers, we need to provide them with all the capabilities and products they need,” Peculic said.