Hank Payments and FinWise Partner on Consumer Banking Solutions
Hank Payments has partnered with FinWise Bank to enhance consumer financial services, including lending, savings and payments.
This collaboration brings together Hank Payments’ banking platform with FinWise’s banking solutions, promising to improve how consumers manage their finances, the companies said in a Monday (March 4) press release.
The partnership will leverage Hank Payments’ technology for payment and budget management alongside FinWise’s payment services, such as ACH origination, wires, check and bill pay, according to the release.
“With new technology developed by the Hank team in 2023, customer deposits will be housed by FinWise allowing Hank to earn fees on the deposits,” Michael Hilmer, chairman and CEO of Hank Payments, said in the release. “The more payments and cash Hank manages, including consumer household payments, the higher the transiting deposits will be.”
Set to launch in the second quarter, this program aims to make financial management more efficient and cost-effective for consumers and businesses, according to the release.
It combines Hank Payments’ financial management platforms and FinWise’s FinTech enablement offerings, signaling a step toward a more automated consumer financial services future, the release said.
“This strategic partnership gradually moves FinWise into payments processing and is in line with our commitment to expand and diversify our sources of recurring fee revenue,” Kent Landvatter, CEO of FinWise, said in the release. “We also expect it to help diversify our deposit composition and over time reduce our cost of funds through relationship banking.”
In another recently announced partnership, FinWise Bank and Stride Funding teamed up in December to launch a program that allows students to secure loans sponsored by their future employers.
The Employer Sponsored Loan (ESL) program enabled by this collaboration allows students to apply for sponsorship through participating employers and, if accepted, be supported with loans from FinWise Bank, facilitated by Stride Funding. The employer then pays back these loans as an employee benefit.
Meanwhile, Hank Payments and Ingo Payments joined forces in October to modernize the disbursement process and colleges and universities.
Their joint solution, Fast Funds, facilitates instant disbursements of tuition funds directly to students’ debit cards.
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