Credit Sesame has announced that it has raised $51 million in growth capital. The funds will help millions of clients gain access to credit services and free banking to meet their financial objectives.
Credit Sesame is a financial technology firm based in the US. The firms that participated in the recent financial round include ATW Partners, Menlo Ventures, Globespan Capital, Inventus Capital, and IA Capital Group.
Sesame Financial Wellness Plan
Credit Sesame has been innovative in offering products and services that leverage consumer data and Artificial Intelligence to help address credit problems that affect over 44 million Americans.
One of Credit Sesame’s steps to close the credit gap is acquiring Zingo, a fintech startup. The acquisition would help the firm enhance rent reporting services and add them to its financial wellness program. According to the firm, “Leveraging Zingo’s intelligent data platform, Credit Sesame will collect, verify, and report rental payments to the credit bureaus to help consumers establish credit and improve their credit profiles based on their consistent payment history.”
Towards the end of this year, Credit Sesame is also expected to launch an innovative feature that will enable customers to use cash to improve their credit profile. If such a service is launched, it will help millions of Americans who are having a hard time entering into the credit system and help them build their credit profile at a faster rate.
Credit Sesame also noted that the demand and market for a fully developed financial wellness program had increased. To meet this demand, the firm has to upgrade its offerings and increase its workforce. The number of employees working for the firm had more than doubled since 2018.
The additional funds will help the firm boost its capability of handling expansion and rapid growth. The firm’s strategies will boost the firm’s profitability, and the new funds will be used for that purpose.
Credit Sesame has been successful in its operations, and it works with millions of clients who have been deriving great value from the platform in recent years. According to the firm, 61% of people who have employed Sesame’s programs have reported a growth in their credit score in the first six months. 20% of these customers have seen their credit score rise by over 50 points in the first six months. The growth comes from critical features the firm has added to allow customers to boost their credit profiles.