In a deal that marks the company’s inaugural acquisition and the start of its global growth, Credit Sesame said it finished its acquisition of Canadian challenger bank STACK. The two companies began their partnership last year, which brought together the deep credit knowledge of Credit Sesame and the digital banking services of STACK to make a no-fee digital bank account called Sesame Cash, according to an announcement.
Credit Sesame said Sesame Cash’s demand keeps rising, which the company says places it as one of the quickest expanding digital banking providers in the United States. The company started launching Sesame Cash to current clients in March, and, in May, it allowed general availability to the public. Over 200,000 clients have signed up for a Sesame Cash digital bank account as of May and the company is opening “several thousand” new accounts daily.
“Together with STACK, we are combining the power of smart banking and AI-driven credit management to create a new kind of personal finance,” Credit Sesame CEO and Founder Adrian Nazari said in the announcement. “How much cash you have, and how and when you use your cash, have a big impact on your credit. Adding cash management to our credit platform was a natural next step to better help consumers manage their overall financial health, and it creates a unique benefit for our consumers and financial partners.”
All of the staffers of STACK have been brought into Credit Sesame, with the inclusion of former CEO Miro Pavletic who is now serving as general manager, international business. Nicolas Dinh, the former COO, is serving as general manager, digital banking business, while Ranjit Sarai, former CPO, is serving as vice president, banking products. Staffers in Canada will keep working out of STACK’s Toronto facility.
Credit Sesame noted that the deal is the inaugural stem toward its global business growth plans over the long haul. Its credit health services will be connected with the digital banking services of STACK later in 2020 to assist Canadian consumers in supervising their credit as well cash combined.
In separate news, Credit Sesame notched $43 million in funding last August, as household debt in the United States climbs.