Finova Financial, provider of flexible, affordable alternatives for the 70 million Americans under-served by the traditional banking system, announced this week that has secured $102.5 million in equity and credit facility funding.
The financing was led by CoVenture with participation from existing Silicon Valley investors who funded Finova’s $52.5 million seed round. The West Palm Beach-based financial-technology company was founded in 2011.
“Seventy million Americans spend $141 billion on alternative financial services a year because they don’t have or want a relationship with traditional banks or financial institutions. This rapidly growing group feels that traditional financial services companies can’t solve their core financial needs," said Gregory Keough, CEO (pictured here). "Finova is using advanced technologies and designing innovative new financial products to serve the needs of this large and growing population. Finova’s proprietary platform delivers an all-digital financial product and experience that fits the lifestyle of the 28 percent of Americans — and growing — outside the formal financial system.”
Finova’s digital products include its flagship Car Equity Line of Credit (CLOC), providing fast emergency loans based on car equity; and its industry-first Automobile-Secured Prepaid Card, which accepts either cash or car equity to fund the card.
Finova’s CLOC, currently available in Florida, California, Tennessee, New Mexico, South Carolina, Oregon and Arizona, has earned Consumer Affairs prestigious partner accreditation for delivering up to 50 percent lower cost than the national average on title loans to consumers, instant online pre-qualification, and payment-against-principal with every payment, the company said. Finova’s Automobile-Secured Prepaid Card helps consumers avoid check-cashing fees, get their paychecks faster, and better manage their finances, the company said. The new funding will be used to expand its digital financial services.
“We look at many fintech companies but Finova has built an incredible all-digital technology platform that consumers really like and has experienced amazing traction in a short period of time,” said CoVenture Managing Partner Ali Hamed. “Finova has created a customer-centric focus for Americans outside the formal financial system that is driving strong growth, rapid consumer adoption, and opportunities for rapid national expansion, which I think is what the future of banking will look like.”