Moderator: David Shipper (Datos Insights)
Panelists: Faran Taher (Thredd) | Simon Darchis (FinWise) | Steven Nigri (NXTMOVES)
You will hear what debit and prepaid providers most often underestimate about credit, what carries over and what is new, how compliance changes, and what a sponsor bank looks for.
Most people do not open their next credit card with the institution they bank with. Datos Insights found that only 27% of consumers who opened a card in the past 12 months chose their primary financial institution, and 37% of cardholders hold their major cards only at another institution. For a debit-led fintech, that means the credit card your customers open is often held somewhere else.
This conversation is for fintech and neobank leaders who run a debit or prepaid program and are weighing credit. The panel moves from what you already have to what you still need to put in place, with practical advice from a sponsor bank, a credit program specialist, and Thredd.
Credit adds two things debit never asked of you
Simon Darchis of FinWise says they are credit quality and funding, because some of your own capital goes into receivables.
You already have part of the infrastructure
Card issuance, payment rails, and scheme connections work for debit or credit, and underwriting is the new part. Faran Taher of Thredd estimates you already have about 35 to 40% of what you need.
Compliance is where the two differ most
Debit and credit follow a very different set of regulations, so your team may need new expertise, says Simon.
Sponsor banks look at your team, processor, and funding
Steven Nigri of NXTMOVES adds that banks care about risk and compliance before profitability.
Plan your roadmap and funding first
Map out your path from debit to credit, and figure out your capital stack before you design your product.
Faran Taher, VP, Global Head of Credit, Thredd
Simon Darchis , SVP, Head of Fintech Products and Strategic Initiatives , FinWise
David Shipper , Strategic Advisor, Cards and Payments, Datos Insights
Steven Nigri, Co-Founder, NXTMOVES
Whatever stage you are at, talk to our team about the next step.
