All STACK employees have been moved into Credit Sesame, and Canada-based employees are planned to work out of the existing STACK offices in Toronto
Credit Sesame completes the acquisition of STACK. (Credit: Pixabay/Pete Linforth)
US-based credit and loan company Credit Sesame has completed the acquisition of Canadian challenger bank STACK, marking the start of its international expansion.
Credit Sesame and STACK have been partners since late 2019. Credit Sesame’s deep credit expertise has been integrated with STACK’s innovative digital banking services to create Sesame Cash, a no-fee digital banking service.
Following the launch of its general availability in mid-May, Sesame Cash saw more than 200,000 customers signing up for the app.
The increased demand for the app has enabled Credit Sesame to feature among the fastest growing digital banking service providers in the US.
Credit Sesame intends roll out several new features and resources to the app over the next few months, helping consumers in managing and growing their cash and credit faster.
The new features include smart bill pay service, savings roundup of transactions to save or pay down debt, and additional rewards programs and credit-building features.
Credit Sesame CEO and founder Adrian Nazari said: “Together with STACK, we are combining the power of smart banking and AI-driven credit management to create a new kind of personal finance. How much cash you have, and how and when you use your cash, have a big impact on your credit.
“Adding cash management to our credit platform was a natural next step to better help consumers manage their overall financial health, and it creates a unique benefit for our consumers and financial partners.”
The transaction resulted in transfer of all STACK employees into Credit Sesame
The acquisition marks the company’s first step towards international business expansion, with plans to integrate credit services with STACK’s digital banking offering later this year. The integration is expected to bring cash and credit management to consumers in Canada.
Credit Sesame said that all the STACK employees have been moved into Credit Sesame, and Canada-based employees are planned to work out of the existing STACK offices in Toronto.
Pavletic said: “Credit Sesame and STACK share the belief that technology can help democratize access to smarter services and stronger support to help consumers achieve financial wellness.
“We’re excited to join the Credit Sesame team to help consumers in the U.S. 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.”