Fintech Avant, which provides underserved customers access to credit, has completed its acquisition of Zero Financial and Level, its neobank and “design-forward banking app assets,” according to a news release.
The transaction will introduce Avant’s digital banking experiences to new consumers. The Chicago-based company has raised $1.6 billion in funding to date, according to Crunchbase, and it has raised over $600 million in equity capital, the news release said.
“The acquisition of Level is an important element of our strategy to provide underbanked and unserved consumers with a full ecosystem of transparent financial products and services with great features and rewards, all in one mobile app,” James Paris, CEO of Avant, said in a prepared statement. “Expanding our product portfolio allows us to serve even more people, offering every consumer access to innovative and rewards-based products to simplify and improve their financial journey. We’re looking forward to building on this acquisition and continuing to bring new products to our growing customer base.”
Avant has connected over 1.5 million customers to $7.5 billion in loans and 400,000 credit cards since 2012. The company also grew its credit card users by 170% in the past two years.
The company is powered by an AI-driven ecosystem and customer insights to provide its service
Meanwhile, Level has a branchless digital banking platform that offers features such as cash back rewards on debit card purchases, early access to paychecks and other offerings. Level’s team will join Avant to continue integrating and developing Avant’s digital banking and credit products.
“Avant shares our mission to challenge the status quo by bringing innovative financial services products to consumers who might otherwise be unable to access them,” Bryce Galen, co-founder and CEO of Zero Financial, said in a statement. “We’re excited to continue that journey as part of the Avant team and to work together to provide new ways for consumers to engage with their finances.”
In other bank technology news, fintech Plaid has raised a massive $425 million in Series D to help grow its platform and “enable the next generation of digital financial services,” according to a blog post by CEO Zach Perret.