Credit Sesame

Credit Sesame Unveils Credit Builder Mastercard

Credit Sesame Unveils Credit Builder Mastercard
By David Penn Posted on
Categories: Alumni News, Credit Sesame, Daily news
  • Credit Sesame launched a new solution to help individuals improve their credit.
  • The new offering, Sesame Credit Builder, is a Mastercard debit card designed to make it easier to build positive payment histories.
  • Today’s launch comes two years after the company first unveiled its credit builder banking technology.

Financial wellness platform Credit Sesame has introduced a new tool to help individuals improve their credit. The new offering, Sesame Credit Builder, is a Mastercard debit card that leverages everyday spending and recurring services to build positive payment histories.

“The new Sesame Credit Builder Mastercard brings inclusion and breaks down the barriers for everyone and (e)specially people with low or limited credit history to build better credit history,” Credit Sesame founder and CEO Adrian Nazari said. “We are making it easy for more Americans to get credit for the money they spend and the payments they make.”

Sesame Credit Builder arrives nearly two years after Credit Sesame first announced general availability of its credit builder banking technology. Today’s offering works like this: individuals must open a virtual secured account with Community Federal Savings Bank (CFSB), which issues the prepaid debit card. Cardholders then begin building credit by depositing money into their Sesame Cash account and making transactions with their debit card. Card purchases create a balance on the cardholder’s virtual secured account. An equal amount of funds is set aside in the cardholder’s Sesame Cash account, which serves as a security deposit to pay off the balance at the end of the month. This approach ensures that cardholders will always have sufficient funds to pay off their balance, thus helping build a positive payment history.

Credit Sesame does not guarantee that any individual’s credit score will improve. The company notes that other factors, including timely bill payments and low credit card balances, also contribute significantly to credit scores.

Nevertheless, according to Tim Montgomery, SVP, Digital Partnerships, North America, Mastercard, technologies like Credit Sesame’s Credit Builder have a significant role to play. “Credit Sesame aims to democratize financial wellness and empower consumers to take charge of their own financial health,” Montgomery said. “Sesame Credit Builder can do just that and help even more consumers improve their credit.”

Founded in 2010, Credit Sesame made its Finovate debut that same year. In the years since, Credit Sesame has grown into a major, financial wellness platform that has helped millions of consumers improve their credit scores and save money on the cost of credit.

Last fall, the company announced a series of major executive hires. Joining the Mountain View, California-based fintech were Bronwyn Syiek as President, Marcus Beisel as Chief Product Officer, Tim Kamienski as Chief Marketing Officer, and David Bagatelle as Chief Banking Officer.

Credit Sesame has raised more than $171 million in funding. The company includes Healthcare of Ontario Pension Plan (HOOPP) and Menlo Ventures among its investors.

Photo by Tamil Vanan

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Credit Sesame Scores $51 Million; Completes Zingo Acquisition

Credit Sesame Scores $51 Million; Completes Zingo Acquisition
By David Penn Posted on
Categories: Alumni News, Alumni profile, Credit Sesame, Daily news, Funding

On the consumption side of personal finance, managing credit is one of the most important aspects of financial wellness. And for more than a decade, Credit Sesame has been among the more innovative companies in this space. From its origins as a hub for financial planning tools, insights into credit scoring, and advice on smart borrowing, Credit Sesame has grown into a leader in the financial wellness industry with new solutions like its Sesame Cash debit account, which topped one million customers less than a year after emerging from its beta launch.

“With Sesame Cash and features like real-time cash back rewards and rewards for improving their credit score,” Credit Sesame GM and Head of Global Banking Miro Pavletic explained when the solution was introduced last September, “we are helping customers put more money back in their pocket than any other digital banking service. Whether you’re looking to buy groceries or debating where to grab takeout, we can connect you with the brands you love and give you cash back instantly,” Pavletic said.

The $51 million in new funding the company raised this week is a testament both to the journey Credit Sesame has been on since its launch in 2010, as well as the potential the firm has to continue to play a leading role in helping millions of consumers better understand and manage their finances.

“Creating access to better credit and finance is critical for financial prosperity for consumers in our country, and it’s enlightening to see major banks and the federal government also taking action,” Credit Sesame CEO Adrian Nazari said. “The impacts of the past year have only made those needs greater, and through our recent acquisition and fundraising, we are proud to be expanding our platform offerings and leading the charge in opening more doors to financial inclusion and wellness for all.” 

The company sees its current mission as closing the “credit chasm,” which it believes limits economic opportunities for more than 44 million “credit invisible” Americans. Part of this effort includes Credit Sesame’s decision to acquire Zingo, a transaction that was completed recently. A fintech company headquartered in Portland, Oregon, Zingo helps renters improve their credit scores via timely rent payments. With almost 80% of its 15 million members renting, rather than owning, a home, Credit Sesame expects the acquisition to represent a “significant growth opportunity for the company” while enhancing “financial inclusion for its customers.” Credit Sesame anticipates integrating Zingo’s rent reporting technology into its financial wellness platform over the summer.

Looking out over the balance of 2021, Credit Sesame appears to be taking a page from Zingo’s book by launching a new feature that will enable consumers to use their cash to help them improve their credit rating. Requiring no credit check, the new solution will allow Credit Sesame customers to leverage their cash and credit together to help build a strong financial foundation and create a path toward better financial health.

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Credit Sesame Acquires Challenger Bank

Credit Sesame Acquires Challenger Bank
By Julie Muhn (@julieschicktanz) Posted on
Categories: Credit Sesame, Daily news, Mergers & Acquisitions

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

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Credit Sesame Launches Digital Bank Account

Credit Sesame Launches Digital Bank Account
By Julie Muhn (@julieschicktanz) Posted on
Categories: Credit Sesame, Daily news

Financial health platform Credit Sesame announced this week it has launched Sesame Cash, a debit card aimed to help consumers reach financial stability while optimizing credit.

The San Francisco-based company, which sees 500,000 new members every month, said that more than five million of its existing members want a digital banking service that integrates their cash and credit. Sesame Cash does just that.

“Through the use of advanced machine learning and AI, we’ve helped millions of consumers improve and manage their credit. However, we identified the disconnect between consumers’ cash and credit—how much cash you have, and how and when you use your cash has an impact on your credit health,” said Credit Sesame Founder and CEO Adrian Nazari. “With Sesame Cash, we are now bridging that gap and unlocking a whole new set of benefits and capabilities in a new product category. This underscores our mission and commitment to innovation and financial inclusion, and the importance we place in working with partners who share the same ethos.”

The Sesame Cash account includes a fee-free Mastercard debit card with no overdraft fees, no minimum balance, and no service fees. Cardholders have free access to more than 55,000 ATMs, the option for early payday, real-time transaction notifications, the ability to freeze or unfreeze the debit card, and virtual card integration with other mobile wallets.

Unique to Credit Sesame’s bank account are daily credit score updates, cash rewards for credit score improvement, and free identity theft protection.

Future advancements include a billpay service that helps users lower their interest payment and pay down debt faster, a roundup autosave tool, rewards programs, and budgeting tools.

This move by Credit Sesame comes at a time when many fintechs are launching debit accounts and high yield savings accounts in order to compete with traditional financial institutions for not only consumer deposits but also mindshare. One of the company’s closest rivals, Credit Karma, launched a high interest savings account last October that yields 1.30% (down from 2.03% at launch).

Credit Sesame’s decision to offer a debit card instead of a high yield savings account will ultimately prove to be a winning strategy. Many fintechs that have launched high interest accounts in the past couple of years have little differentiation now that the U.S. Federal Reserve has cut interest rates to 1.25%.

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Credit Sesame Appoints New Chief People Officer

Credit Sesame Appoints New Chief People Officer
By Julie Muhn (@julieschicktanz) Posted on
Categories: Credit Sesame

Consumer credit health platform Credit Sesame today announced the appointment of a new Chief People Officer.

Pablo Gaito (pictured), who will be the first to serve in the newly created position, is tasked with scaling Credit Sesame’s “people operations” ahead of the company’s planned IPO. Gaito brings 20 years of experience managing human capital at large companies such as Cargill, Gap, and ServiceNow.

Gaito said he was attracted by “the authenticity of the people” at Credit Sesame” as well as the company’s “noble purpose to improve people’s lives through democratizing credit health.” He added, “Given the recent funding and ongoing growth, Credit Sesame is at a defining moment. I’m thrilled to guide us on our talent and culture roadmap to achieve our goal of scaling a healthy mission-driven company.”

Credit Sesame aims to democratize access to consumer credit scores, and has offered the service for free for almost a decade. The company also offers identity theft protection, savings recommendations, and a complete picture of users’ financial state all in one place.

Last month, Credit Sesame raised $43 million, a round which brought its total funding to $110 million. The company’s investors include Menlo Ventures, Inventus Capital, Globespan Capital, IA Capital Groups, Symantec, Capital One Ventures, and Stanford University.

After Credit Sesame’s most recent funding round in August, the company revealed that its valuation was nearing $1 billion and it planned to IPO soon. There is no word on the exact timing for the public debut, however.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: Credit Sesame, Fiserv, INETCO Systems, Klarna, Nubank, Samsung, TickSmith

On Finovate.com

  • INETCO’s Insight 7 Brings Machine Learning to Fraud Prevention.
  • Nubank’s User Base Soars to 15 Million.
  • Credit Sesame Appoints New Chief People Officer.

Around the web

  • Uwharrie Bank to leverage Fiserv for digital transformation.
  • Klarna to offer buy now, pay later options to Samsung customers.
  • TickSmith’s Marketplace Advanced Insights offers insight into how Nasdaq Basic Canada works in the marketplace.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Credit Sesame Raises $43 Million in Advance of IPO

Credit Sesame Raises $43 Million in Advance of IPO
By David Penn Posted on
Categories: Credit Sesame, Funding

Credit score and loan management platform, Credit Sesame, has raised $43 million so far in its latest funding round, which is likely to be the last before the firm goes public, writes Jane Connolly of Fintech Futures (Finovate’s sister publication).

The round, led by ATW Partners with participation from previous investors, has not yet closed. TechCrunch reports CEO and founder, Adrian Nazari, believes the company is on track to achieve a $1 billion valuation when the round does close.

The funding is a combination of equity and debt for the profitable company, which has seen 90% annual revenue growth for the last five years. It will be spent on business expansion and developing Credit Sesame’s RoboCredit artificial intelligence algorithms, which enable consumers to see what actions they can take to improve their credit scores.

Nazari said this is likely to be the last funding round before launching an IPO and the company has no plans to look at mergers or acquisitions until after it goes public.

“Credit Sesame is revolutionizing how consumers manage their credit,” said Kerry Propper, co-founder and managing partner of ATW Partners. “What once was a mystery and black box is now distilled by Credit Sesame’s PCM platform into easy to digest actionable insights that can effortlessly and meaningfully change a consumer’s credit and financial health.”

Users of Credit Sesame, which coined the term “Personal Credit Management,” can check their initial credit score and look at debt rebalancing options for free, but pay fees to take up products referred through the engine.

Founded in 2010 and headquartered in Mountain View, California, Credit Sesame demonstrated its credit-based PFM for a co-branded environment at FinovateSpring 2015.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: Andes Wealth Technologies, Chatbots.Studio, College Aid Pro, Credit Sesame, Edmit, Fenergo, Geezeo, Insuritas, JSOL Corporation, Namaste Credit, Payfone, Salt Edge, StrategyCorps, StreetShares, Trulioo

On Finovate.com

  • Namaste Credit Becomes Challenger Bank.
  • Chatbots.Studio Partners with Yozobi. Check them out at FinovateFall later this month!
  • Credit Sesame Raises $43 Million in Advance of IPO.

Around the web

  • Salt Edge marks 400+ integrations with open banking APIs.
  • Payfone teams up with Digital Matrix Systems to help companies fight fraud.
  • Fenergo appoints Louise O’Connell to the newly created role of Chief Customer Officer.
  • StrategyCorps brings on former Geezeo executive, Bryan Clagett.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Finovate Alumni News

By David Penn Posted on
Categories: ACI Worldwide, AutoGravity, BioCatch, Credit Karma, Credit Sesame, Envestnet, Meniga, Mortgage Harmony, NCR Corporation, PayPal, TIO Networks, Token, TransferTo, Yodlee

On Finovate.com

  • Token Forges Strategic Partnership with Envestnet | Yodlee.

Around the web

  • ACI Worldwide to provide “technology backbone” for real-time payments platform designed by Payments Network Malaysia.
  • NCR partners with Samsung to launch new all-in-one POS commerce station, NCR Silver Quantum.
  • Grab chooses TransferTo to deliver real-time digital payments to its drivers in Southeast Asia.
  • Meniga wins London Design Awards for brand design experience.
  • PayPal’s TIO Networks suspends operations to protect TIO’s customers.
  • Kinecta FCU to Offer Mortgage Harmony’s CU RateReset products.
  • App Informers lists Credit Karma and Credit Sesame in list of top 5 Identity Monitoring Apps for 2017.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Credit Sesame Raises More than $42 Million, Unveils Robo Advisor for Credit

Credit Sesame Raises More than $42 Million, Unveils Robo Advisor for Credit
By David Penn Posted on
Categories: Credit Sesame, Funding

Credit service and financial wellness company Credit Sesame has raised more than $42 million in funding. Featuring new and existing investors such as Menlo Ventures, Inventus Capital, Globespan Capital, IA Capital, and SF Capital, the combined equity ($26.6 million) and venture debt ($15.5 million) financing will take Credit Sesame’s total capital to more than $77 million. The funding will help speed Credit Sesame’s growth, enable the company to hire more than 100 new employees over the next 12 months, and “advance its analytics, robo advisor and machine learning technologies.”

That’s right. Robo advisor. In addition to the company’s funding announcement, Credit Sesame founder and CEO Adrian Nazari introduced new robo advisory technology that enables consumers to automate the management of their credit and loans. Credit Sesame sees this as “addressing the liability side of the balance sheet” rather than the asset side typically watched over by most robo advisors.

Credit Sesame CEO and founder Adrian Nazari demonstrating the company’s credit-based PFM solution at FinovateSpring 2015.

“While many companies have spent the last few years catching up to our free credit score offering for consumers, Credit Sesame has been developing and proving robo advisor technology.” Nazari said. He added, “this technology translates consumer financial and credit information into simple and actionable steps that consumers can easily understand and utilize to improve their financial profile and leverage their credit.”

Founded in 2010 and headquartered in Mountain View, California, Credit Sesame demonstrated its credit-based PFM for a co-branded environment at FinovateSpring 2015. With more than 12 million members, Credit Sesame’s mobile and online solutions give consumers free access to their credit profile, including their credit score, credit report grades and monitoring, as well as interactive tools and tips for securing better borrowing options such as low or no-balance credit card offers and debt consolidation loans.

Credit Sesame has achieved 100% annual growth for the past three years, reaching profitability earlier this year. This spring, the company launched a new service to pre-qualify members for credit cards. In February, Nazari was named to the Entrepreneur’s List of Most Inspirational Leaders in 2017, one month after earning similar recognition from Inc.com.

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Finovate Alumni News

By David Penn Posted on
Categories: ACI Worldwide, AutoGravity, Avoka, Baker Hill, Compass Plus, Credit Sesame, Deserve, Envestnet, Fidor Bank, Fiserv, ID.me, iSignthis, nCino, On Deck Capital, Payment Ninja, SelfScore, Symbiont, Temenos, ThreatMetrix, VISA, Yodlee

On Finovate.com

  • AutoGravity Partners with Global Lending Services.
  • SelfScore Rebrands as Deserve, Closes on $12 Million in Funding.
  • Credit Sesame Raises More than $42 Million, Unveils Robo Advisor for Credit.

Around the web

  • Avoka extends strategic partnership with Mitek for digital identity verification solutions.
  • Commercial loan origination, CRM are among the new features in Baker Hill NextGen solution.
  • OnDeck partners with Ingo Money and Visa to provide loans to SMEs via debit card.
  • Westpac NZ to transition to real-time banking platform from ACI Worldwide.
  • Regions Bank to add P2P payment and account-to-account transfer solutions from Fiserv.
  • iSignthis announces new agreement with Omnislots.com operator, Dialinvest.
  • Payment Ninja to launch in the U.S. in November.
  • ThreatMetrix and ID.me partner to deliver ID verification for government and commercial digital services
  • Russian bank Lipetskcombank implements new mobile banking app built on Tranzware Mobile Banking from Compass Plus.
  • Accenture and nCino expand alliance to accelerate digital transformation within top U.S. banks
  • Symbiont joins Wall Street Blockchain Alliance as corporate member.
  • Envestnet | Yodlee to integrate risk insight solutions with Fannie Mae’s Ddsktop underwriter validation Service.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: BellaDati, BeSmartee, Capsilon, CoverHound, Credit Sesame, LendUp, Roostify, SuperMoney, Symbiont, Symphony Software Foundation, Worldline

On Finovate.com

  • Worldline Buys First Data Baltics for $85 Million.
  • Symbiont Announces Strategic Investment from Medici Ventures.

Around the web

  • Benzinga features SuperMoney, LendUp, Credit Sesame, Capsilon, & BeSmartee as companies revolutionizing lending.
  • HuffPost features Jeana Deninger, ‎Chief Operating Officer at CoverHound.
  • BellaDati announces BellaDati IoT Cloud for the exploration of real-time data from Cross Domain Development Kit XDK of Bosch Connected Devices.
  • Symphony Software Foundation now counts more than 50 projects, 100+ contributors, 4 working groups, & 25 members.
  • Roostify helps First Cal Cut Loan Process to 15 Days.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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