Following this announcement, the new solution is set to offer a consolidated and secure balance view for debit and secured credit, as well as help banks, fintechs, and other businesses address the needs of underbanked and underserved clients. The partnership is expected to simplify the secured credit process, making it easier for users to manage their debit and credit accounts.
The streamlined solution will also reduce the risk for lenders by backing credit with efficient and secured deposits. In addition, both financial institutions are expected to continue focusing on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
By automating the movement of funds between accounts, clients will be given the possibility to manage all their money in one single account that powers both credit and debit transactions. At the same time, it is expected to eliminate the need for users to make manual payments between collateral and DDA accounts when larger purchases need to be made. Cardholders will also be enabled to manage one `available to spend` balance, streamlining the procedure and ensuring real-time updates of the transaction.
Included in the key features of Galileo Secured Credit with Dynamic Funding is a simplified experience, as DDA and collateral funds are kept together in a single pool, ready to be spent as debit or credit, while also enabling larger purchases when needed. Furthermore, it will also provide a customer-centric secured credit (helping users avoid falling into a debt cycle – when approved for a secured credit card, there will be no immediate impact on their spending account, and once their credit is built, retrieving their deposit will not affect their credit score, as it will always be accessible to them) and a differentiated product offering.
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