(24 September 2010 – USA)Think Finance, a US start-up tapping technology to provide services to the unbanked and underbanked, has secured a US$90 million (A$93 million) credit facility to help it develop new products.Established in 2001, Sequoia Capital-backed Think Finance claims to have served over one million of America’s estimated 60 million unbanked and underbanked customers.
The new credit facility from Victory Park Capital Advisors will be used for a major new push, funding expansion of its existing product lines and supporting the development and growth of new offerings.
Chief among these is Elastic – currently in beta – a low cost pre-paid debit card with a flexible emergency cash line of credit. Soon, the product will also include a savings feature and financial literacy and budgeting tools.
Ken Rees, CEO, Think Finance, has said that traditional banking products aren’t meeting the needs of one quarter of US households, and with major banks introducing new fees for low balance accounts, the need for affordable, convenient alternatives is greater than ever.
Think Finance’s goal is to provide all of the features that these 60 million underbanked consumers might need to manage life’s everyday expenses, Mr Rees added.