INSIKT Closes $45 Million Social Bond Issuance Led by WebBank

Bank investors have helped propel INSIKT’s social bond program
to $298 million in just two years.

SAN FRANCISCO–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/CommunityInvestmentManagement?src=hash” target=”_blank”gt;#CommunityInvestmentManagementlt;/agt;–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 INSIKT’s 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 INSIKT’s 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 INSIKT’s 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. INSIKT’s mission is to build
financially healthy low-income communities by providing empowering
financial services to America’s 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. We’re proud that 67% percent of INSIKT’s 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 industry’s 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 Magazine’s Top
50 Most Genius Companies in 2018.

Contacts

INSIKT
Heather Barrett
hbarrett@insikt.com

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