Propel partners with Pathward to power nationwide credit solution for Pathward partners
TORONTO, ON, October 17, 2022 – Propel Holdings Inc. (“Propel”) (TSX: PRL), an innovative fintech company dedicated to credit inclusion, and Pathward™, N.A. (“Pathward”), a leading financial empowerment company, announced today that the two companies have entered into an agreement for Propel to become Pathward’s primary consumer lending as a service (“LaaS”) fintech partner.
Powered by Propel’s industry-leading, proprietary fintech platform, Pathward will provide credit solutions through this LaaS capability through its partners. In line with Propel and Pathward’s shared mission of financial inclusion, these credit products will be offered through a seamless online integration into the Propel platform.
For many years, Pathward, formerly MetaBank, has focused on increasing financial access through innovative banking as a service, which includes payment, tax, and commercial finance solutions. Under its new name, the company continues to focus on its purpose of powering financial inclusion for all.
The five-year renewable agreement contemplates fee income for Propel by providing white labelled technology and service solutions for Pathward’s consumer lending capabilities, including customer acquisition services, loan management software, licensing of proprietary artificial intelligence-powered, risk and response scores, and credit servicing capabilities. This partnership accelerates Propel’s strategic plan to expand and diversify its current product and service offerings and geographic reach as an adjacent business to its legacy business lines. Propel expects the program to launch by Q1 2023 and be accretive to revenue and net income in 2023, with financial impact growing into 2024. The company will release more details in future financial outlook.
“Propel’s successful bid to become Pathward’s primary lending as a service fintech partner is a testament to our incredible team, as well as our world-class proprietary technology, operational excellence and artificial intelligence capabilities. We are excited to expand on our current product and service offerings and believe that this new LaaS business will leverage our existing capabilities and complement our robust core business lines, all while providing credit solutions to even more consumers. We are looking forward to developing this program in partnership with the Pathward team with whom we have already fostered an excellent relationship and shares Propel’s mission to facilitate access to credit for more consumers,” said Clive Kinross, Chief Executive Officer of Propel.
“We were impressed with their outstanding technology capabilities and highly experienced team. Our relationship with the Propel team is based on shared values, which gives us confidence in this new partnership and the potential long-term benefit to our customers. This partnership will allow Pathward to provide access to credit while limiting risk, similar to our other consumer lending programs,” said Pathward President Anthony Sharett.
Propel is an innovative, online financial technology (“fintech”) company, committed to credit inclusion by providing and facilitating fair, fast and transparent access to credit with exceptional service using its proprietary online lending platform. Through its operating brands, Propel is focused on providing access to credit to underserved consumers who struggle to access credit from mainstream credit providers. Propel’s revenue growth and profitability have accelerated significantly over the past two years as Propel has been able to facilitate access to credit for an increasing number of consumers, helping them move forward in their credit journeys.
Pathward™, N.A., a national bank, is a subsidiary of Pathward Financial, Inc.™ (Nasdaq: CASH). Pathward is a U.S.-based financial empowerment company driven by its purpose to power financial inclusion for all™. Pathward strives to increase financial availability, choice and opportunity across our Banking as a Service and Commercial Finance business lines. The strategic business lines provide end-to-end support to individuals and businesses. Learn more at Pathward.com.
Certain statements made in this press release may constitute forward-looking information under applicable securities laws. These statements may relate to the program launch date, expected results and benefits from the agreement with Pathward, the services provided to Pathward under the term of the agreement and the anticipated acceleration of Propel’s strategic plan. Particularly, information regarding our expectations of future results including the agreement’s contribution to revenue and net income in 2023 and 2024 is forward-looking information. As the context requires, this may include certain targets as disclosed in the prospectus for our initial public offering, which are based on the factors and assumptions, and subject to the risks, as set out therein and herein. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.
Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the “Risk Factors” section of the Company’s annual information form dated March 21, 2022 for the year ended December 31, 2021 (the “AIF”). A copy of the AIF and the Company’s other publicly filed documents can be accessed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com.
The Company cautions that the list of risk factors and uncertainties described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. The forward-looking information contained in this press release represents our expectations as of the date of this press release (or as the date they are otherwise stated to be made), and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
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