CURO and MetaBank® Announce Agreement to Offer Consumers an Innovative and Flexible Line of Credit
WICHITA, Kan .– (COMMERCIAL THREAD) –CURO Group Holdings Corp. (NYSE: CURO) (“CURO” or the “Company”), a leader in providing short-term credit to underbanked consumers, today announced that it will begin offering to consumers in the United States an innovative and flexible credit line. The offer is the result of a new relationship with MetaBank®; a wholly owned subsidiary of Meta Financial Group, Inc.® (NASDAQ: CASH) (“Meta”) and a leader in providing innovative payment, community banking and financing solutions to partners across the country.
CURO and Meta form a relationship with a diverse and deep experience serving underbanked consumers across a variety of products and platforms. With this initial product structure, the parties seek to provide consumers with the access to the credit they need with the ability to control their cost of borrowing with simple fees that only apply when credit is drawn. Consumers are expected to be able to access credit in increments that match their individual needs, while still having the flexibility in the time they need to pay off the line of credit. It is expected that principal repayments will be built into each minimum payment and responsible credit limits based on sound underwriting criteria.
“This relationship extends Meta’s long-standing commitment to serving consumers across the credit spectrum,” said Brent Turner, Meta EVP and Head of Consumer Lending. “We believe that Meta’s experience in specialty consumer loan and payment products, combined with CURO’s 20 years of proven experience in providing credit to underbanked consumers, will result in a product and platform that drive innovation, transparency and responsible credit in the market. ”
CURO and Meta plan to finalize support agreements and due diligence in Q2 2018 and then structure a pilot launch. The program’s partnership agreement specifies that Meta will hold up to $ 350 million in product receivables on its balance sheet during the first three years of the partnership.
“We are very pleased to announce this agreement with Meta,” said Don Gayhardt, President and CEO of CURO. “We believe the relationship with Meta will further expand our addressable market in the United States, and we are excited to introduce consumers to another credit product with flexibility and transparent pricing. ”
CURO Group Holdings Corp. (NYSE: CURO), operating in three countries and powered by its fully integrated technology platform, is a market leader in terms of revenue by providing short-term credit to underbanked consumers. In 1997, the company was founded in Riverside, Calif., By three childhood friends from Wichita, Kansas, to meet growing consumer needs for short-term loans. Their success has led to the opening of stores across the United States and an expansion to offer online loans and financial services in three countries. Today, CURO combines its market expertise with a fully integrated technology platform, omnichannel approach and advanced credit decisions to deliver a range of short-term credit products across all media. CURO operates under several brands including Speedy Cash, Rapid Cash, Cash Money, LendDirect, Avío Credit, WageDayAdvance, Juo Loans and Opt +. With over 20 years of operational experience, CURO offers financial freedom to the underbanked.
About Meta Financial Group
Meta Financial Group, Inc. (“Meta”) is the holding company of MetaBank®, a federally chartered savings bank. Common meta-shares are traded on the Nasdaq Global Select Market® under the symbol CASH. Based in Sioux Falls, SD, MetaBank operates in both the banking and payments industries through: MetaBank, its community banking operation; Meta Payment Systems, its electronic payments division; AFS / IBEX, its commercial insurance premium financing division; and Refund Advantage, EPS Financial and Specialty Consumer Services, its tax-related financial solutions divisions. More information is available at metafinancialgroup.com.
This press release contains forward-looking statements. These forward-looking statements include statements relating to our expectations as to the benefits consumers can derive from this new credit product, our belief that the relationship with Meta and the new credit product will foster innovation, transparency and responsible credit on the market, our expectations for when to finalize agreements and pilot launch and our belief that this relationship will further expand our addressable market in the United States. In addition, words such as “like” direction “,” estimate “,” anticipate “,” believe “,” anticipate “,” step “,” plan “,” predict “,” focused “,” likely “,” s ‘expect to “,” intend “,” should “,” will “,” confident “, variations of these words and similar phrases are intended to identify forward-looking statements. Our ability to make these forward-looking statements is based on certain assumptions and judgments, including our ability to execute our business strategy, the effectiveness of our relationship with Meta and the rate of consumer reaction and acceptance to this new credit product. inaccurate in the future. These forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which are difficult to predict as to the timing, extent, likelihood and degree of occurrence. There are factors material both under our control and beyond our control that could cause the actual results of the Company to differ materially from those of forward-looking statements. These factors include our level of debt; our dependence on third-party lenders to provide the liquidity we need to fund our loans and our ability to access third-party financing at an affordable price; our ability to protect our proprietary technology and analytics and to track those of our competitors; disruption of our information technology systems which adversely affects our business operations; inefficient pricing of the credit risk of our potential or existing customers; inaccurate information provided by clients or third parties could lead to errors in the assessment of clients’ qualifications to receive loans; inappropriate disclosure of customer personal data; failure or third parties who provide us with products, services or support; any default by third party lenders on whom we rely to do business in certain states; the disruption of our relationships with banks and other providers of third-party electronic payment solutions; disruption caused by theft and employee or third party errors in our stores; and other factors discussed in our filings with the Securities and Exchange Commission. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual future results. We assume no obligation to update, modify or clarify any forward-looking statement for any reason.