- Acquisition by Empower Finance:
- Empower Finance, a US-based credit underwriter, has entered into a definitive agreement to acquire Petal, a credit card and financial tech enterprise.
- Deal Details:
- The acquisition of Petal by Empower Finance is set to be finalized later this quarter for an undisclosed sum.
- Broadening Product Offerings:
- This acquisition will expand Empower’s product offerings to include the credit card category within the US market.
- Petal’s Background:
- Petal, founded in 2016, offers access to Visa credit cards without requiring a credit score, using open banking data for credit qualification.
- Synergy in Credit Risk Assessment:
- Both Empower and Petal utilize non-traditional methods for assessing credit risk, leveraging machine learning to analyze real-time cash flow data during underwriting.
- Integration Strategy:
- Empower intends to integrate Petal and its previously acquired company, Cashalo, into its network, citing strategic footholds in the US credit card sector and the Southeast Asian credit market.
- Commentary from Leadership:
- Warren Hogarth, CEO of Empower, emphasizes that the acquisitions will bring new capabilities to alleviate credit insecurity globally.
- Jason Rosen, co-founder of Petal, believes the combined strengths of Empower and Petal will accelerate progress in closing the equity gap in credit.
