Salt Lake City, Utah-based WebBank is teaming up with BMG Money to expand access to lower-cost loans.
The partnership aims to broaden financial inclusion for employees and retirees with limited access to socially responsible loan programs, the companies said in a Tuesday (Aug. 6) news release.
WebBank and BMG Money are launching LoansAtWork, which is issued by the former, to give their customers flexible, employment-based loans that don’t take credit scores into account.
Loans typically range from $500 to $10,000 and are deposited directly into customers’ bank accounts. Repayments are scheduled around when customers get paid and are collected automatically to avoid missed payments, the release said.
Payment amounts are designed to be affordable and manageable, with no prepayment penalties, the release added. Additionally, loan performance will be reported to the credit bureaus.
“As BMG Money strives to level the playing field for the financially underserved, our alignment with WebBank’s incredible team extends holistic services to more customers in need,” BMG Money President and CEO Kieran Noonan said in the release. “This partnership offers tremendous value for thousands of individuals, and we look forward to the nationwide impact it will have.”
Jason Lloyd, president and CEO of WebBank, said: “WebBank’s partnership with BMG Money is a testament to our commitment to support underserved individuals and communities. We believe that everyone deserves access to financial services and the opportunity to achieve economic stability.”
Sixteen percent of U.S. consumers don’t have a credit card, PYMNTS Intelligence has found, dampening their financial flexibility and limiting their access to a lifeline when facing an emergency.
“Secured Credit Solutions: Assessing Credit Accessibility for Disenfranchised Consumers,” a PYMNTS Intelligence and Atelio collaboration, examines why some consumer groups are unable to access credit cards and how this impacts their financial lifestyles. It draws on insights from a survey of 2,630 U.S. consumers conducted from March 13 to April 2.
Credit card outsiders, as PYMNTS calls them, are a diverse group. PYMNTS Intelligence found that 52% of outsiders once had a credit card, yet three-quarters chose to close their accounts, citing a range of personal reasons for doing so.
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