Mercury Financial secures $200m debt facility to expand credit card business
US fintech Mercury Financial has secured a $200 million debt facility as it looks to expand its credit card business for the middle class.
The new facility, which has been provided by client funds managed by US investment banking company Neuberger Berman, will be used to originate additional credit card accounts and boost the growth of its existing cardmember relationships.
Founded in 2017 and headquartered in Austin, Texas, Mercury Financial utilises over 100 million data points to provide middle-class Americans with access to credit through its credit card and mobile app offerings. It claims to serve more than 1.5 million customers.
“We see a massive opportunity for Mercury to reach our near-prime target market, which so many banks and non-bank lenders ignore,” says Jason Whiting, chief financial officer (CFO) of Mercury Financial.
“Regulatory limitations have discouraged banks from approaching this segment, while subprime lenders have traditionally relied on high fee products which often results in continued financial stress.”
James Peterson, CEO of Mercury Financial, says: “By analysing financial data the right way, we can better assess risk and help more qualified Americans better manage their credit.”
Peterson adds that the partnership with Neuberger Berman will allow the firm to reach more underserved Americans, calling them the “bedrock of the US economy”.