Credit Sesame acquires Canadian challenger Stack for international expansion
Credit and loans company, Credit Sesame, has announced its acquisition of Canadian challenger bank, Stack.
The two firms had been in partnership since the 2019 design of Sesame Cash, a no-fee digital banking service “to help consumers grow their cash and credit together” which launched in March.
That service saw more than 200,000 sign up in less than a month, and demand “continues to surge”, according to Credit Sesame.
All Stack employees are to be integrated into Credit Sesame, including former CEO, Miro Pavletic, who becomes general manager for Canadian and international business.
The move is part of an attempted international expansion. Credit Sesame’s credit services will be integrated with Stack’s digital banking offering to bring cash and credit management to Canadian consumers.
“Credit Sesame and Stack share the belief that technology can help democratise access to smarter services and stronger support to help consumers achieve financial wellness,” says Pavletic.
“We’re excited to join the Credit Sesame team to help consumers in the US and Canada keep as much of their money in their pockets as possible, help them grow their credit, and give them access to the right credit products at the right time.”
The combined firm aims to roll out several new features and resources designed to help consumers manage and grow their cash and credit faster, which the company expects will “further accelerate customer demand.”
These include a smart bill pay service, savings roundup of transactions to save or pay down debt, and additional rewards programs and credit-building features.
Founded in 2010, Credit Sesame claims to monitor more than $35 billion in loans. Its business model gives its members free access to credit score monitoring, credit reports, and identity protection tools, as well as recommendations regarding a variety of loan types.
It raised $43 million in an IPO back in September 2019, with CEO and founder, Adrian Nazari, stating at the time it had “no plans” to look at mergers and acquisitions.