Synctera, a startup that helps companies build and launch FinTech apps and embedded financial products via its Banking as a Service (BaaS) platform, today announced the release of Synctera Line of Credit. A BaaS industry first, Synctera Line of Credit allows both FinTech developers and established companies to quickly create innovative lending products or embed lending services into existing offerings.
“Consumers’ credit-related needs and preferences continue to evolve, and millions of Americans lack real access to credit,” said Peter Hazlehurst, Synctera’s Chief Executive Officer. “Forward-thinking companies are poised to help by offering standalone and embedded lending products. As we work towards our vision of unlocking human potential through financial innovation, we are excited to see the impact that Synctera Line of Credit can make for under-resourced consumers.”
With Synctera Line of Credit, companies have the opportunity to reimagine lending and break down the barriers that many consumers and small businesses have historically faced when trying to access credit. By combining Synctera Line of Credit with their own deep customer insights, new approaches to underwriting, and superior customer experiences, companies can launch on-demand borrowing solutions that can help customers improve their quality of life and financial situation.
Synctera Line of Credit unlocks innovation for companies to create a wide range of new lending solutions, like:
- Helping Gig Economy or Creator Economy workers manage expenses in the face of irregular income, seasonality, or market dynamics
- Allowing consumers or businesses to finance projects - such as construction, landscaping, or home remodeling - where cashflow, costs, and schedules might fluctuate
- Smart payment schedules for unforeseen expenses like medical treatment and critical healthcare
- Innovative debt-repayment products where credit lines can be used to pay off higher-interest credit cards or consumer debt
“Lines of credit offer distinct advantages for borrowers that are dealing with hard-to-predict costs, variable income, or both,” said Dominik Weisserth, Chief Product Officer at Synctera. “Companies building lending products with Synctera Line of Credit get access to a critical piece of financial infrastructure that can help them provide more value to their customers and realize more growth opportunities.”
Line of Credit further enhances Synctera’s end-to-end BaaS platform; companies building with Synctera can now offer lending services alongside FDIC-insured bank accounts, personalized debit cards, various payment types, and more. By expanding into credit products, Synctera aims to help companies create stronger customer relationships, complement existing product offerings, and unlock new opportunities for revenue growth.
A line of credit is a flexible way for retail and business customers alike to borrow and utilize a preset amount of funds. Customers can replenish the line of credit with repayments, and then borrow again up to the predetermined credit limit, avoiding the hassle of reapplying for a loan multiple times.
With Line of Credit, Synctera provides the required financial technology - including ledger and KYC/KYB services - as well as servicing and optional operational and compliance support. A Synctera partner bank will serve as the lender of record. Companies that build using Line of Credit are responsible for marketing, customer service, and assigning credit limits.
For FinTech developers building with the Synctera platform, Line of Credit is available immediately via a ready-to-use API.