Fintech Firm Kashable Completes $25.6 Million Funding Round To Expand Operations

Kashable, a financial technology platform that provides employees with credit through company payrolls, has secured $25.6 million in a Series B Funding round.

The lending platform announced that the money obtained from the Series B funding will help the firm create new services for financial well-being and enhance its capacity to loan employees with different credit histories.

Kashable Plans To Make Credit Accessible To All Users

Einat Steklov, the co-chief Executive Officer and co-founder of Kashable believes that everyone should be granted access to credit, not just a select few.

In a world where financial uncertainty can affect anyone, Kashable is boldly making credit accessible. According to Steklov, Kashable’s program offers employers a free and advanced software solution, empowering their employees with comprehensive financial wellness services.

The company stated that its way of deciding who gets a loan looks at things like how stable someone’s income is, information about groups and individual jobs, and other significant details.

Kashable, created in 2013, partners with companies such as Alight Solutions, Huntington Ingalls, Reid Health, and Cigna to make this kind of credit more reachable. The firm provides employees free resources to learn about money, like budgeting tools, individual financial coaching, and credit monitoring.

The additional Funding came as about 30% of consumers with credit scores of 650 or lower face challenges in getting credit products. These consumers and others are categorized as credit marginalized. This means they might need more accessible access to credit, and the report suggests they could use help in understanding credit products.

Last year, PYMNTS mentioned that this large group of credit-marginalized consumers might also be part of the underbanked category and could benefit from support with credit-related matters.

Empowering Financial Literacy and Customer Loyalty

According to earlier studies, people are eager to learn and find tools to manage their debts. This creates an opportunity for banks and financial technology companies (FinTechs) to use the trust they’ve earned from users.

The platform will offer tools and education to improve financial knowledge, which helps customers and strengthens their bonds with them.

The Chief Executive Officer of Concora Credit, Bruce Weinstein, mentioned in a PYMNTS panel conversation that when merchants offer financing to clients with near-prime and subprime credit, it can lead to these customers returning to the store.

For these customers, having access to credit is valued, and efforts are made to keep them engaged by maintaining an open credit line for those in good standing. This involves actively encouraging them to return to the stores through various efforts.