FinTech News
Tally Pivots to B2B Credit Card Debt Management Product
Tally — an app that helps consumers pay off their credit card debt — has announced an expansion of their service and will allow partners to offer their platform.
About the new offering:
Tally has unveiled a new B2B white-labeled credit card debt management platform. This offering will allow banks, institutions, FinTechs, lenders, and other businesses to integrate Tally’s software into their own services.
As a result of this shift, Tally has announced that it will sunset its direct-to-consumer loan portfolio and its Tally Line of Credit will now be offered via a partner network. However, current users will still be able to access tools within the Tally app for the time being. At press time, a search of Tally’s consumer FAQ page did not turn up any further details about the planned sunsetting.
Announcing the B2B product, Tally also teased that it had already landed its first partner. While the FinTech didn’t say the name of the company, it noted that it was a publically traded firm with more than 50 million users. The company in question plans to roll-out Tally’s software to consumers in July of this year.
According to Tally, since its founding in 2015, the app has helped pay down more than $2 billion in credit card debt.
Additionally:
In the press release announcing the new B2B plans, Tally also revealed that it had raised additional capital to develop the product. The company says that this was raised from existing investors. To date, Tally says it’s now raised more than $200 million.
What they’re saying:
Commenting on Tally’s pivot, CEO and founder Jason Brown stated, “Tally’s solution is one of few on the market that actually addresses the credit crisis. We started the company going straight to the people who needed it most. But what we’ve discovered — and as market dynamics have gotten even more challenging — is that our overall impact can be much greater if we enable partners to leverage our technology.” Brown continued, “We are uniquely positioned to scale our offering to partners, and we’re excited to offer all of the advantages of Tally to their customers to best deliver on our mission.”
My thoughts:
I may sound like a broken record here, but this is yet another entry in the growing FinTech trend of leveraging proven app concepts and allowing other institutions to offer similar functionality. Some other examples (off the top of my head) include Spiral, Bakkt, and TomoCredit. However, Tally is certainly one of the larger and more tenured companies to embark on this new route.
Before fully reading Tally’s announcement, I honestly would have thought that they’d have kept the consumer-facing app going while also expanding into B2B. However, that doesn’t seem to be the case. Looking ahead, I’m very curious to learn who this mysterious first client is. I guess we’ll have to wait until this summer to find out.
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