Finova Financial secures $ 102.5 million in FinTech funding
WEST PALM BEACH, Florida – (BUSINESS WIRE) –Finova Financial, a provider of fair and affordable digital alternatives to Americans underserved by the traditional banking system, today announced it has secured $ 102.5 million in equity and credit facilities. Funding was led by CoVenture
with the participation of existing investors which funded Finova’s $ 52 million funding round, and will be used to continue Finova’s expansion of its digital financial services products to transform the future of the bank.
Gregory Keough, CEO of Finova Financial, said, “70 million Americans spend $ 141 billion a year on alternative financial services because they don’t have or want relationships with traditional banks or financial institutions. This rapidly growing group believes that traditional financial services companies cannot meet their basic financial needs. Finova uses cutting-edge technologies and designs new innovative financial products to meet the needs of this large and growing population. Finova’s proprietary platform delivers a fully digital financial product and experience that fits the lifestyle of 28% of Americans – and growing – outside the formal financial system. ”
Finova’s other digital products include its flagship Auto Equity Line of Credit (CLOC), which provides quick and affordable emergency loans based on auto equity; and its first auto-secured prepaid card, which accepts cash or equity to fund the card. Finova’s CLOC, currently available in Florida, California, Tennessee, New Mexico, South Carolina, Oregon, and Arizona, has already has obtained the accreditation of prestigious partner of Consumer Affairs to deliver up to 50% below the national average cost on consumer securities lending, instant online prequalification, and payment against principal on every payment. Finova’s Automotive Secure Prepaid Card helps consumers avoid check cashing fees, get their paychecks faster, and manage their finances better.
Powered by Finova’s proprietary cloud-based digital platform, the CLOC Loan and Auto-Secure Prepaid Card provide affordable solutions to about 50% of Americans who don’t have $ 400 to face a financial emergency in allowing them to quickly unlock their car’s equity.
“We’re looking at a lot of FinTech companies, but Finova has built an amazing all-digital technology platform that consumers really love and has seen incredible traction in a short period of time,” said Ali Hamed, Managing Partner of CoVenture. “Finova has created a customer-centric approach for Americans outside the formal financial system, resulting in strong growth, rapid consumer adoption and opportunities for rapid national expansion, which I believe is what the future of the bank 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 annually in fees and interest on alternative financial products. Founded in 2015 by a team of financial services, technology and payments experts, Finova is backed by leading Silicon Valley venture capital firms and Wall Street Private Equity investors.
For more information: www.finovafinancial.com