Green Dot and Credibly Team on Small Business Banking

Financial services company Green Dot partnered with lending platform Credibly to offer small businesses new financial products.

The partnership will see Credibly employ Green Dot’s Banking-as-a-Service (BaaS) platform to give small- to medium-sized businesses (SMBs) a more seamless banking experience, better cash flow management and faster access to capital, according to a Tuesday (Sept. 26) press release.

“The demand for seamless, accessible and intuitive financial tools for businesses remains on the rise, and we are thrilled to partner with Green Dot to add small business banking to complement our lending solutions,” Credibly founder and co-CEO Ryan Rosett said in the release. “With a business checking account, customers will have faster and easier access to the cash, credit and capital they need to run and grow their business.”

The companies’ business bank accounts will feature online mobile banking with customer service support, quick account setup, no fees for eligible deposits, overdraft protection, and a nationwide ATM network, according to the release.

“Small businesses are a critical engine for economic growth, and we want to give them the power to bank seamlessly, affordably and with confidence,” said Simran Singh, head of enterprise business development and embedded finance for Green Dot, in the release.

Roughly a third of SMBs said they prefer working with larger national banks, even though the traditional banking system hasn’t always made it easy for these businesses to access capital.

“Still, many SMBs have shied away from using newer, digital options, including neobanks, due to a lack of education around their offerings,” PYMNTS wrote earlier this month.

However, the Main Street funding situation is getting increasingly worse, with 76% of SMBs saying they would close their doors within 60 days of a cash crunch.

“What we’re seeing is an increase in need from small businesses for funding,” Scott Steinberg, chief product officer and chief operating officer at data intelligence platform Enigma Technologies, told PYMNTS.

PYMNTS Intelligence found that embedded finance presents an opportunity for SMBs to use a digital financial services platform, and it could account for more than a quarter of global SMB banking revenue by 2025.

For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.