Credit Sesame Acquires Challenger Bank

https://finovate.com/credit-sesame-acquires-challenger-bank/
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Credit Sesame made the move to acquire STACK, a Canada-based challenger bank, today. Terms of the deal were not disclosed.

The announcement comes three months after Credit Sesame unveiled Sesame Cash, a digital bank account powered by STACK. After a successful pilot in March, Credit Sesame began a widespread rollout of Sesame Cash in mid-May. Since then, the company has onboarded more than 200,000 users to the new service. Now, as Credit Sesame reports, “the demand continues to surge with thousands of new accounts per day…”

Today’s acquisition will also help Credit Sesame expand geographically. The company’s financial management services will be available within STACK’s platform. The move into Canada marks Credit Sesame’s first step toward international expansion.

“Together with STACK, we are combining the power of smart banking and AI-driven credit management to create a new kind of personal finance,” said Credit Sesame CEO and Founder Adrian Nazari. “How much cash you have, and how and when you use your cash, have a big impact on your credit. Adding cash management to our credit platform was a natural next step to better help consumers manage their overall financial health, and it creates a unique benefit for our consumers and financial partners.”

The Sesame Cash account is aimed at underserved users and individuals living paycheck-to-paycheck. Some of the features include free daily credit score refreshes, cash rewards for improving credit, early payday, and real-time transaction notifications. The account comes with a Mastercard debit card that offers Mastercard Zero Liability protection, direct deposit, the ability to freeze or unfreeze the debit card in-app, and more.

Credit Sesame, which most recently demoed at FinovateSpring 2015, plans to launch more features, including a smart billpay service, transaction roundups to save or pay down debt, rewards programs, and credit-building opportunities. The company plans to reveal these offerings “over the next few months.”

Former STACK CEO Miro Pavletic is now Credit Sesame’s General Manager of Canadian and International Business. STACK’s former COO Nicolas Dinh and former CPO Ranjit Sarai have transitioned to serve within Credit Sesame’s banking services. STACK’s Canada-based employees will work out of Toronto, Canada-based STACK offices.


Photo by Pascal Swier on Unsplash

https://finovate.com/credit-sesame-acquires-challenger-bank/