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Bond Financial Technologies launches new Credit Builder Card

By Edlyn Cardoza

August 19, 2022

  • Bloom Credit
  • Bond Financial Technologies
  • Credit Builder Card
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Bond Financial Technologies, Embedded Finance Platform, Credit Builder Card, FinTech, Credit Builder Card, Mastercard, Credit Score, Bloom Credit, FICO® Score, Credit Risk, USABond Financial Technologies Inc., an embedded finance platform, launched a new Credit Builder Card that simplifies FinTechs and brands to offer secured credit cards to their customers.

The new secured credit card, powered by the Mastercard network and issued by Bond sponsor bank Evolve Bank & Trust, gives consumers the ability to spend only funds they have with the added benefits of building a credit history that can help credit-challenged consumers take control of their financial futures.

“Evolve is a passionate supporter of secured credit cards and helping to bring greater financial access to the market, especially given the volatile macroenvironment,” said Hank Word, president of Evolve’s Open Banking division. “We look forward to enabling brands across industries to quickly deliver Bond’s Credit Builder Cards and other financial services directly to their customers and grow with them over time.”

In the U.S. alone, over 150 million individuals are considered financially at-risk, according to Experian and U.S. Census data. These financially at-risk consumers continue to face pressure when managing their finances – from high inflation to economic uncertainty. Nearly one-third of U.S. consumers have a subprime credit score, defined as between 580 to 669, including 40% of millennials, who make up “the highest ratio of subprime consumers of any generation,” according to Experian. Additionally, an estimated 49 million U.S. consumers are classified as either “credit invisible” or “unscorable.”

“We’re in the middle of a huge shift in access to credit,” says Roy Ng, CEO and co-founder of Bond. “Historically, access to credit has been challenging — 40% of subprime scores are represented by millennials — but advances in embedded finance are fundamentally changing this dynamic. Bond’s Credit Builder Card allows brands to offer a new, high-value financial product directly to their customers at a time when they may need it most. Consumers who build up a strong credit history will qualify for a traditional credit card and the ability to take out an auto loan or mortgage at better interest rates.”

Secured credit cards allow consumers to develop a credit history which may enable them to secure mortgages, auto loans, and other financial services at better rates. In partnership with Bloom Credit, payments made with Bond’s Credit Builder Card will be reported to the credit agencies just like with a traditional credit card, which can help consumers establish and improve their FICO® Score, which 90% of lenders use to evaluate a person’s credit risk.

“Helping platforms like Bond innovate to better serve their clients is why Bloom Credit exists,” said Christian Widhalm, CEO of Bloom Credit. “An accurate credit score is essential in a system where 34% of consumers in 2021 had addressable errors on their credit reports, 58% of millennials say their credit score cost them access to credit, and 49 million Americans are either credit invisible or unscorable. Working together on Bond’s Credit Builder Card enables fintech clients to quickly launch and help consumers establish and build accurate credit scores essential to achieving their financial goals.”

Brands offering this secured credit card will have stronger value propositions to serve customers seeking a path to greater financial stability. Recent research from Cornerstone Advisors shows that most U.S. consumers want to secure financial products directly from their favourite brands and that 32% will spend more with brands they bank with than previously.

“Now more than ever, it’s critical to provide consumers and brands with trusted, accessible and empowering payment options that meet their needs today and achieve their future goals,” said Sherri Haymond, executive vice president, Digital Partnerships at Mastercard. “We’re pleased to partner with Bond to make credit more accessible to consumers and deliver the Credit Builder Card at scale.”

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