FinWise Bancorp Announces Strategic Lending Program with PowerPay to Offer Transparent and Affordable Monthly Payments for Home Improvement and Elective Healthcare Purchases

Rhea-AI Summary

FinWise Bancorp (NASDAQ: FINW) has announced a new strategic lending program with PowerPay, a fintech company specializing in lending and payment solutions for Home Improvement and Elective HealthCare. The partnership aims to offer consumers nationwide fair and affordable monthly payments through a network of quality contractors and medical providers.

PowerPay, founded in 2020, has processed over $8 billion across all 50 states and has 12,000+ onboarded Service Providers. The FinWise loan product will be integrated into PowerPay's data-driven platform, allowing for quick credit processing at the point-of-sale. This collaboration enables FinWise to expand its lending capabilities while providing regulatory expertise to support PowerPay's growth.

Positive

• Strategic partnership with PowerPay expands FinWise's lending capabilities
• Access to PowerPay's network of 12,000+ Service Providers across all 50 states
• Opportunity to tap into PowerPay's $8 billion processed transactions since 2020
• Potential for increased loan volume through Home Improvement and Elective HealthCare segments

Negative

• None.

Insights

Financial Analyst

This strategic partnership between FinWise Bancorp and PowerPay represents a significant move in the fintech lending space, particularly for home improvement and elective healthcare financing. PowerPay's impressive track record of processing over $8 billion across all 50 states since 2020 indicates a robust market demand. For FinWise, this partnership opens up a new revenue stream and expands its loan portfolio diversity. The collaboration leverages FinWise's regulatory expertise and PowerPay's established network of 12,000+ service providers, creating a potentially scalable and compliant lending model. However, investors should consider the risks associated with consumer lending in these sectors, especially given current economic uncertainties. The success of this venture will likely depend on the quality of underwriting and the ability to maintain low default rates. While this partnership shows promise for growth, its impact on FinWise's bottom line will need to be closely monitored in upcoming quarterly reports.

Market Research Analyst

The partnership between FinWise and PowerPay taps into two significant consumer markets: home improvement and elective healthcare. With rising home values and an aging housing stock, the home improvement sector has seen steady growth. Similarly, the elective healthcare market continues to expand as consumers prioritize personal wellness. PowerPay's point-of-sale financing model, now backed by FinWise's banking infrastructure, could capture a larger share of these markets. The emphasis on transparency and affordability aligns with consumer preferences for straightforward financial products. This move positions FinWise to compete more effectively in the growing "buy now, pay later" trend, adapting it to larger ticket items. The partnership's success will hinge on consumer adoption rates and the ability to maintain competitive interest rates while managing risk. Investors should watch for metrics on loan origination volume and performance in future earnings reports to gauge the impact of this strategic initiative on FinWise's market position and revenue growth.

MURRAY, Utah, Sept. 25, 2024 (GLOBE NEWSWIRE) -- FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), parent company of FinWise Bank (the “Bank”), today announced the launch of a new strategic lending program with PowerPay, LLC (“PowerPay”). PowerPay is a leading fintech company specializing in simple and affordable real-time lending and payment solutions to the Home Improvement and Elective HealthCare segments. With over 200 employees, the Company has processed over $8 billion across all 50 states since its inception in 2020.

The FinWise loan product, in partnership with PowerPay offers consumers nationwide, fair and affordable monthly payments through a network of quality contractors and medical providers. Each of the Company’s 12,000+ onboarded Service Providers uses the data driven platform to quickly process credit at the point-of-sale. PowerPay has partnered with leading national home remodelers and physician networks, enabling consumers to obtain financing options from trusted professionals. Through this new partnership, borrowers can expect to receive the same level of care and support, from application to loan payoff, via PowerPay’s highly-rated Customer Concierge team and technology platform.

“PowerPay remains relentless in our pursuit of responsive and responsible solutions to meet the growing needs of homeowners and patients who seek financing,” said Mike Petrakis, PowerPay Founder & CEO. “Our dedication to merchant service and low monthly payment financing for consumers has led to a significant increase in demand for our loans. Partnership with FinWise Bank allows us to increase the number of borrowers we can effectively support while also ensuring deep regulatory expertise and focus as we continue to scale the business and our technologies.”

Kent Landvatter, CEO of FinWise commented, “We are thrilled to partner with PowerPay on this innovative approach to offer consumers a transparent and affordable lending product with a simple monthly payment structure for Home Improvement and Elective HealthCare purchases. This agreement is a testament to the meaningful benefits that FinWise’s lending and payments solutions provide its strategic partners. It also underscores how the FinWise model enables strategic partner scaling while providing regulatory oversight through an intensive due-diligence process and compliance assessment.”

About PowerPay
Launched in 2020, PowerPay is a financial technology company providing seamless consumer financing solutions to over 12,000+ national providers. The Company helps contractors and physicians convert homeowner and patient purchases into simple monthly payments through its point-of-sale lending platform. Since its inception, PowerPay has funded over $8B. www.getpowerpay.com.

About FinWise Bancorp

FinWise provides Banking and Payments solutions to fintech brands. 2024 is a key expansion year for the Company, as it expands and diversifies its business model by launching and incorporating Payments (MoneyRails™) and BIN Sponsorship offerings. Its existing Strategic Program business, done through scalable API-driven infrastructure, powers deposit, lending and payments programs for leading fintech brands. In addition, FinWise manages other Lending programs such as SBA 7(a), Owner Occupied RE, and Leasing, which provide flexibility for disciplined balance sheet growth.

Through its compliance oversight and risk management-first culture, the Company is also well positioned to guide fintechs through a rigorous process to facilitate regulatory compliance.

Contacts

investors@finwisebank.com
media@finwisebank.com
bennett.andelman@getpowerpay.com

FAQ

What is the new strategic lending program announced by FinWise Bancorp (FINW)?

FinWise Bancorp (FINW) has announced a new strategic lending program with PowerPay, offering transparent and affordable monthly payments for Home Improvement and Elective HealthCare purchases through a network of quality contractors and medical providers.

How will the partnership between FinWise (FINW) and PowerPay benefit consumers?

The partnership will provide consumers with fair and affordable monthly payment options for Home Improvement and Elective HealthCare purchases, processed quickly at the point-of-sale through PowerPay's data-driven platform and network of trusted professionals.

What is the scale of PowerPay's operations that FinWise (FINW) will be tapping into?

PowerPay has processed over $8 billion across all 50 states since its inception in 2020, has over 200 employees, and has onboarded 12,000+ Service Providers who use their platform to process credit at the point-of-sale.

How does the FinWise (FINW) partnership support PowerPay's growth?

The partnership with FinWise Bank allows PowerPay to increase the number of borrowers they can support while ensuring deep regulatory expertise and focus as they continue to scale their business and technologies.