Exclusive: FinWise announces strategic partnership with digital lender PowerPay

Investing.com -- FinWise Bancorp (NASDAQ:FINW ) has announced a new strategic lending program with financial technology group PowerPay to offer loans to consumers looking to carry out home improvement projects or finance elective healthcare treatments.

In a statement on Wednesday, Utah-based FinWise said the partnership will offer borrowers access to credit through a network of home remodelers and medical providers.

"We are thrilled to partner with PowerPay on this innovative approach to offer consumers a transparent and affordable lending product with a simple monthly payment structure for home improvement and elective healthcare purchases," said FinWise Chief Executive Officer Kent Landvatter.

PowerPay describes itself as a digital lending platform whose artificial intelligence technology "offers instant approvals on unsecured loans up to $100,000," according to its LinkedIn page.

The firm, which lists its mailing address in Pennsylvania, says it has more than 12,000 service providers in its network. The company says it offers "interest rates from 4.99%-14.99% for up to 15 years" along with two years of deferred payments "for those who qualify," the LinkedIn page showed.

Chief Executive Mike Petrakis said that, due to a "significant increase" in loan demand, the partnership with FinWise allows the group to "increase the number of borrowers we can effectively support while also ensuring deep regulatory expertise and focus as we continue to scale the business."

FinWise, which launched its initial public offering in 2021, aims to give "banking and payments solutions to fintech brands." It has previously targeted expanding its operations this year.

In July, FinWise posted $3.2 million in second-quarter net income, down from $4.6 million in the corresponding period last year, due in part to an uptick in spending on "business infrastructure." Loan originations, or the process by which a borrower applies for a loan, came in at $1.2 billion, matching the year-ago quarter.

Source: Investing.com