INSIKT Closes $45 Million Social Bond Issuance Led by WebBank

INSIKT, a technology powered CDFI (Community Development Financial Institution) disrupting the predatory lending industry, completed a $45 million private social bond issuance as part of its mission to accelerate financial inclusion and invest capital into low-income communities in America.

This marked INSIKTs first securitization in 2019 backed by 33,805 responsible, credit-building loans. In 2018, INSIKT completed eight social bond issuances, for a total of $210 million. This latest placement brings INSIKTs total capital raised to $298 million over 12 social bond issuances since 2017 which have helped fund 242,752 loans to hard-working families.

Millions of working families in America lack access to safe and affordable loans and are vulnerable to predatory lenders. Working with financial institutions like WebBank, INSIKT is able to provide borrowers with affordable loans that have saved them hundreds of millions of dollars in additional fees and interest by avoiding predatory options.

At WebBank, we work with innovative financial technology companies like INSIKT to make lending more inclusive and accessible in our nation, said Jason Lloyd, Executive Vice President of Strategy & Business Development. Our investment in INSIKTs social bonds has provided us compelling economic returns while helping INSIKT provide loans to working-families in America. This will help open doors of opportunity to hard working consumers and create new paths to financial security.

It has been a privilege working with WebBank as an investor in our social bonds since early 2018, said James Gutierrez, CEO and Founder of INSIKT. WebBank is leading the way in forging partnerships that are modernizing the ways in which borrowers obtain safe and affordable loans. Their latest investment will help INSIKT serve more working families across America and further our mission of expanding access to capital in low-income communities.

About WebBank

WebBank is an FDIC insured, state-chartered industrial bank headquartered in Salt Lake City, Utah. It was organized under the laws of the State of Utah in 1997 and operates under federal banking law. Through its industrial bank charter, WebBank offers a wide variety of products either directly to its consumer customers via savings accounts and time deposits, or through our Strategic Partnerships, providing niche financing solutions to businesses and consumers.

About INSIKT:

INSIKT is a technology-powered, CDFI that provides small, affordable loans to working families in America. INSIKTs mission is to build financially healthy low-income communities by providing empowering financial services to Americas 66-million underbanked and unbanked. INSIKT has pioneered a cloud-based lending technology that enables trusted local businesses to submit credit applications for centralized review and approval by its proprietary scoring algorithms. Currently available in nearly 1,200 locations across California, Texas, Illinois and Arizona, INSIKT has provided hundreds of thousands of credit-building, responsible loans to low-income households since launching in 2014. Were proud that 67% percent of INSIKTs repeat customers grow their credit score by an average of 312 points from their first to second loan. By leveraging technology to reach more geographies and working families across America, INSIKT aims to end reliance on the payday loan industrys 23,000 store footprint. INSIKT was founded in 2012 by James Gutierrez, Kevin Kang, and Randy Wong. All three founders helped create and scale Oportun, a CDFI and one of Time Magazines Top 50 Most Genius Companies in 2018.

INSIKT
Heather Barrett
[email protected]