FinTech firm Possible Finance, which works on financial services for the underserved, announced Tuesday (May 3) that it has received an additional $20 million in equity funding, along with important key executive hires and the rollout of new credit card and cash advance products.
According to a press release, the new products are Possible Card and Possible Cash, which will build on the Possible Loan. That was the first product the company put out, which was a short-term, small-dollar installment loan to help those who can’t access affordable credit and succumb to predatory lending.
The Possible Card isn’t a regular credit card with interest charges or penalty fees, instead building a new kind of card to help customers fight against mounting debt to boost long-term finance habits.
The release said it doesn’t come with interest or late fees, rather just one monthly fee. The card is designed for “those undervalued by the current financial system.”
Possible Cash is a cash advance offering, giving customers the opportunity to qualify for an unsecured credit card, and letting customers who are doing well be automatically pre-approved for a Possible Card, letting Possible reach more underserved customers.
Tony Huang, co-founder and CEO of Possible Finance, said the company was intended to help “break the debt cycle” that is caused by predatory financial products, and also help them add to their credit history.
“When we realized many of our customers escaped the payday debt cycle only to jump right into a similar trap caused by credit card debt, we knew Possible could offer a better solution,” Huang said. “Existing credit card companies work just like payday lenders – they profit by intentionally lending to vulnerable consumers knowing they won’t be able to make timely payments.”
In related news, PYMNTS wrote that Yonder, a credit card startup, is teaming with Yapily, an open banking platform, to give access to credit for those who don’t have a U.K. credit score.
The companies want to make things more fair for those who haven’t gotten access to credit. The maneuver involves accessing a customer’s financial footprint with open banking.