WEST PALM BEACH, FL, Provider of fair and affordable digital alternatives for Americans underserved by the traditional banking system, has secured $102.5M in equity and credit facility funding.
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Finova Financial, provider of fair and affordable digital alternatives for Americans underserved by the traditional banking system, announced today it has secured $102.5 million in equity and credit facility funding. The financing was led by CoVenture with participation from existing investors who funded Finova's $52 million seed round, and will be used to continue Finova's expansion of its digital financial services products to transform the future of banking.
Gregory Keough, CEO of Finova Financial, said, "70 million Americans spend $141 billion on alternative financial services a year because they don't have or want a relationship with traditional banks or financial institutions. This rapidly growing group feels that traditional financial services companies can't solve their core financial needs. Finova is using advanced technologies and designing innovative new financial products to serve the needs of this large and growing population. Finova's proprietary platform delivers an all-digital financial product and experience that fits the lifestyle of the 28% of Americans-and growing-outside the formal financial system."
Finova's other digital products include its flagship Car Equity Line of Credit (CLOC), providing fast, affordable emergency loans based on car equity; and its industry-first Automobile-Secured Prepaid Card, which accepts either cash or car equity to fund the card. Finova's CLOC, currently available in Florida, California, Tennessee, New Mexico, South Carolina, Oregon and Arizona, has already earned Consumer Affairs prestigious partner accreditation for delivering up to 50% lower cost than the national average on title loans to consumers, instant online pre-qualification, and payment-against-principal with every payment. Finova's Automobile-Secured Prepaid Card helps consumers avoid check-cashing fees, get their paychecks faster, and better manage their finances.
Powered by Finova's proprietary cloud-based digital platform, the CLOC loan and Automobile-Secured Prepaid Card provide affordable solutions for roughly 50% of Americans who don't have $400 to deal with a financial emergency by allowing them to quickly unlock the equity in their car.
"We look at many FinTech companies but Finova has built an incredible all-digital technology platform that consumers really like and has experienced amazing traction in a short period of time," said CoVenture Managing Partner Ali Hamed. "Finova has created a customer-centric focus for Americans outside the formal financial system that is driving strong growth, rapid consumer adoption, and opportunities for rapid national expansion, which I think is what the future of banking will look like."
About Finova Financial
Working to transform the future of banking, Finova Financial is the socially responsible and flexible solution for the 28% of Americans outside the traditional financial system. Finova develops fair and affordable digital financial technologies to provide a path to financial health for the 70 million financially underserved Americans who spend $141 billion in fees and interest annually on alternative financial products. Founded in 2015 by a team of financial services, technology and payment experts, Finova is backed by leading Silicon Valley Venture Capital firms and Wall Street Private Equity investors.