Empower Finance, Inc. has announced its plans to acquire Petal, a fintech company based in New York. The acquisition is part of Empower’s strategy to change the dynamics of the lending industry and provide fair credit access to underserved consumers. Empower has also completed its acquisition of Cashalo, a consumer credit and lending company headquartered in the Philippines. Acquiring Petal and Cashalo will enable Empower to enter both the credit card category in the United States and the Southeast Asian credit market, respectively.
Empower is known for its alternative credit underwriting and financial product offerings. The company uses real-time cash flow, nontraditional data and machine learning to assess credit risk and financial responsibility. With these acquisitions, Empower aims to leverage its product, operations and analytical capabilities to address the credit insecurity faced by billions of people worldwide.
Petal, a pioneer in cash flow underwriting, offers high-quality Visa credit cards that don’t require a credit score to qualify. Instead, individuals can use their open banking data to establish payment history and access credit. This approach makes credit more accessible to millions of U.S. consumers who have thin or no credit files. Empower says it expects to finalize the Petal acquisition later this quarter.
