Toronto-based fintech firm XTM has introduced its unsecured Visa credit card programme, targeted at the underbanked population with thin credit scores.
Dubbed Vert Card, the new proposition offers credit approval without taking the help of credit score or previous credit history.
To do so, it leverages artificial intelligence and digital banking to collect customer data within seconds through a mobile app.
Users can get credit within the $250 to $500 range, for which they do not require any security deposit. They will be eventually granted more credit if they are able to maintain good payment history.
The credit limit of users will be reported to Equifax and TransUnion along with their good payment history.
Approved users would receive a Beacon Score increase within days, with real-time credit score display on the app along with tips for credit building.
XTM CEO Marilyn Schaffer said: “Given our current economic environment and the growing user-base that XTM has in place, this credit product is the next on-demand, well-placed offering in our portfolio.
“We leveraged much of our existing Today Card mobile app and back-end technology to make this happen and based on our initial demand for the product, we believe myvertcard.com will drive significant revenue for XTM in 2021.”
Currently, the fintech firm is in talks with lending firms to offer the underlying credit facilities.
It is also in discussions with firms who intend to private label the solution and market to their clients such as mortgage brokers and lenders.
In August this year, NetCents Technology collaborated with XTM to facilitate cryptocurrency transactions and loading of payment cards.
NetCents will provide the technology to enable cryptocurrency payments for XTM’s card programmes.
Earlier this year, XTM entered into a deal with DCBank to provide a loaded prepaid Mastercard in exchange for cash through a cash accepting kiosk.