New solution offers a consolidated balance view for debit and secured credit.
Galileo Financial Technologies, a leading financial technology company owned by SoFi Technologies, Inc. , announced the launch of Secured Credit with Dynamic Funding. Built to help fintechs, banks and other businesses address the needs of underbanked and underserved customers, Galileo Secured Credit with Dynamic Funding simplifies the secured credit process, making it easier for consumers to manage their debit and credit accounts. This streamlined solution also reduces the risk for lenders by backing credit with secured deposits.
With more than 45 million Americans either credit unserved or underserved, the need for secured credit is high. Traditional secured models have long been plagued with complexities around where consumers want to use their funds. Customers face the dilemma of keeping their cash in their demand deposit account (DDA) for use with their debit card or in their collateral account to use as secured credit. The behavior of dividing these funds puts consumers at a disadvantage throughout their credit-building journey.
The Galileo Secured Credit with Dynamic Funding solution resolves those complexities. By automating the movement of funds between accounts, customers are empowered to manage all their money in one single account that powers both debit and credit transactions. It eliminates the need for users to make manual transfers between collateral and DDA accounts when the need arises to make larger purchases. With this solution, cardholders can manage one “available to spend” balance, streamlining the process and ensuring real-time updates of transactions.
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“Dynamic Funding gives our clients an edge in offering flexible, secured credit with debit to underserved consumers, helping them build credit and save without the typical friction,” said David Feuer, CPO at Galileo. “With this solution, financial institutions, fintechs and other businesses can provide a user-friendly experience that empowers consumers to manage their finances in real-time.”
Key Features of Galileo Secured Credit with Dynamic Funding:
- Simplified Experience: DDA and collateral funds are kept together in a single pool, ready to be spent as debit or credit, enabling larger purchases when needed.
- Customer-Centric Secured Credit: This credit product helps consumers avoid falling into a debt cycle by combining DDA and collateral balances. When approved for a secured credit card, there is no immediate impact on their spending account. Once their credit is built, retrieving their deposit doesn’t affect their credit score–it was always accessible to them.
- Differentiated Product Offering: Galileo clients can now offer a unique secured credit solution. With seamless automation and ease of use, Galileo Secured Credit with Dynamic Funding provides a compelling value proposition that helps attract and retain customers–especially those new to credit or rebuilding their financial profiles.
Galileo Secure Credit with Dynamic Funding demonstrates the company’s commitment to providing innovative financial solutions that meet the evolving needs of fintechs, financial institutions and businesses, while driving financial inclusion for underserved markets.
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