Curve has secured a $1 billion credit facility from Credit Suisse.
The U.K.-based FinTech will use the money to fund its consumer lending product, Curve Flex, the company stated in a press release on Tuesday (Dec. 6).
Curve Flex, which was launched last year, enables customers to split any transaction they make with their Curve card into monthly installments. With the money provided by Credit Suisse, the firm intends to scale its lending capacity in the U.K., the EU and the U.S.
The company also said it plans to launch a new buy now, pay later (BNPL) lending product for eCommerce.
Commenting on the latest deal, Paul Harrald, CIO of Curve Group and the global head of Curve Credit, said the company has “ambitious plans for lending.”
“Securing financing of this size during this period of economic uncertainty is a testament to the broad support of our bold expansion plans underpinned with now demonstrated expertise with data. We certainly are very pleased with the results of our lending to date, with our highly responsible approach encouraging responsible borrowing providing for excellent credit quality in a difficult market,” he added.
Like other lenders in the digital finance space, Curve takes a data-centric approach to underwriting.
“Curve’s real-time access to valuable spend and behavioral data allows it to make highly responsible and timely lending offers across a variety of alternatives, thanks to a broad view across its customers’ financial positions,” the company stated in Tuesday’s release.
Curve’s decision to double down on its credit business comes at a time when European banks are reining in lending. As PYMNTS reported Sunday (Dec. 4) banks in Europe will likely reduce lending next year as the continent dips into a recession, marking the first annual decline in loan volume in nine years.
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