Galileo Launches Secured Credit with Dynamic Funding Empowering Banks and Fintechs to Simplify Credit-Building for Consumers

Rhea-AI Summary

Galileo Financial Technologies, owned by SoFi Technologies, Inc. (NASDAQ: SOFI), has launched Secured Credit with Dynamic Funding. This innovative solution aims to simplify credit-building for underbanked and underserved consumers, addressing a market of over 45 million Americans. The new offering consolidates debit and secured credit balances, allowing users to manage their funds in a single account.

Key features include:

• Simplified experience with combined DDA and collateral funds
• Customer-centric approach to avoid debt cycles
• Differentiated product offering for Galileo clients

This solution streamlines the secured credit process, reduces risk for lenders, and provides a user-friendly experience for consumers to manage their finances in real-time.

Positive

• Launch of Secured Credit with Dynamic Funding, addressing a market of 45 million underserved Americans
• Simplified credit-building process for consumers
• Reduced risk for lenders through secured deposits
• Potential for increased customer attraction and retention for Galileo clients

Negative

• None.

Insights

Financial Technology Analyst

Galileo's launch of Secured Credit with Dynamic Funding is a strategic move that could significantly impact SoFi's B2B fintech offerings. This solution addresses a important gap in the market for the 45 million underserved or unserved Americans in need of credit-building tools. By simplifying the secured credit process and automating fund movements, Galileo is positioning itself as an innovator in financial inclusion.

The key advantage lies in the consolidated balance view for debit and secured credit, which streamlines user experience and potentially increases engagement. This could lead to higher customer acquisition and retention rates for Galileo's clients, translating to increased revenue for SoFi's B2B segment.

However, the impact on SoFi's stock may be in the short term, as B2B solutions typically have longer sales cycles and gradual adoption rates. Long-term prospects are promising if the solution gains traction, potentially expanding SoFi's market share in the fintech infrastructure space and diversifying its revenue streams beyond consumer-facing products.

New solution offers a consolidated balance view for debit and secured credit.

SALT LAKE CITY--(BUSINESS WIRE)-- Galileo Financial Technologies, a leading financial technology company owned by SoFi Technologies, Inc. (NASDAQ: SOFI), announced the launch of Secured Credit with Dynamic Funding. Built to help fintechs, banks and other businesses address the needs of underbanked and underserved customers, Galileo Secured Credit with Dynamic Funding simplifies the secured credit process, making it easier for consumers to manage their debit and credit accounts. This streamlined solution also reduces the risk for lenders by backing credit with secured deposits.

With more than 45 million Americans either credit unserved or underserved, the need for secured credit is high. Traditional secured models have long been plagued with complexities around where consumers want to use their funds. Customers face the dilemma of keeping their cash in their demand deposit account (DDA) for use with their debit card or in their collateral account to use as secured credit. The behavior of dividing these funds puts consumers at a disadvantage throughout their credit-building journey.

The Galileo Secured Credit with Dynamic Funding solution resolves those complexities. By automating the movement of funds between accounts, customers are empowered to manage all their money in one single account that powers both debit and credit transactions. It eliminates the need for users to make manual transfers between collateral and DDA accounts when the need arises to make larger purchases. With this solution, cardholders can manage one "available to spend" balance, streamlining the process and ensuring real-time updates of transactions.

“Dynamic Funding gives our clients an edge in offering flexible, secured credit with debit to underserved consumers, helping them build credit and save without the typical friction,” said David Feuer, CPO at Galileo. “With this solution, financial institutions, fintechs and other businesses can provide a user-friendly experience that empowers consumers to manage their finances in real-time.”

Key Features of Galileo Secured Credit with Dynamic Funding:

• Simplified Experience: DDA and collateral funds are kept together in a single pool, ready to be spent as debit or credit, enabling larger purchases when needed.
• Customer-Centric Secured Credit: This credit product helps consumers avoid falling into a debt cycle by combining DDA and collateral balances. When approved for a secured credit card, there is no immediate impact on their spending account. Once their credit is built, retrieving their deposit doesn’t affect their credit score–it was always accessible to them.
• Differentiated Product Offering: Galileo clients can now offer a unique secured credit solution. With seamless automation and ease of use, Galileo Secured Credit with Dynamic Funding provides a compelling value proposition that helps attract and retain customers–especially those new to credit or rebuilding their financial profiles.

Galileo Secure Credit with Dynamic Funding demonstrates the company’s commitment to providing innovative financial solutions that meet the evolving needs of fintechs, financial institutions and businesses, while driving financial inclusion for underserved markets.

For more information on Galileo’s secured credit programs and how the Secured Credit with Dynamic Funding option can provide a low-risk entry to your credit offerings and drive business growth, please visit https://docs.galileo-ft.com/pro/docs/secured-credit.

About Galileo Financial Technologies

Galileo Financial Technologies, LLC and certain of its affiliates collectively comprise a financial technology company owned and operated independently by SoFi Technologies, Inc. (NASDAQ: SOFI) that enables fintechs, financial institutions, and emerging and established brands to build differentiated financial solutions that deliver exceptional, customer-centric experiences. Through modern, open APIs, Galileo’s flexible, secure, scalable and fully integrated platform drives innovation across payments and financial services. Trusted by digital banking heavyweights, early-stage innovators and enterprise clients alike, Galileo supports issuing physical and virtual payment cards, mobile push provisioning, tailored and differentiated financial products and more, across industries and geographies.

©2024 Galileo Financial Technologies, LLC. All rights reserved.

Galileo Financial Technologies, LLC is a technology company, not a bank. Galileo partners with many issuing banks to provide banking services in North and Latin America.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240925975533/en/

MEDIA CONTACT:

Solomon Joseph

The Fletcher Group

905.510.1400

solomon@fletchergroupllc.com

Source: Galileo Financial Technologies, LLC

FAQ

What is Galileo's new Secured Credit with Dynamic Funding solution?

Galileo's Secured Credit with Dynamic Funding is a new solution that simplifies the secured credit process by consolidating debit and credit balances, allowing users to manage their funds in a single account for both debit and credit transactions.

How does Galileo's Secured Credit with Dynamic Funding benefit consumers?

The solution benefits consumers by simplifying credit-building, allowing larger purchases when needed, and helping avoid debt cycles by combining DDA and collateral balances in a single pool for both debit and credit spending.

What market is Galileo targeting with its new Secured Credit solution?

Galileo is targeting the underbanked and underserved market, which includes over 45 million Americans who are either credit unserved or underserved.

How does Galileo's new solution impact SOFI stock?

While the direct impact on SOFI stock is not specified, the launch of this innovative solution could potentially drive business growth for Galileo, a subsidiary of SoFi Technologies, Inc. (NASDAQ: SOFI), by attracting new clients and retaining existing ones.