US consumer credit and loan company Credit Sesame has completed its acquisition of Canadian challenger bank Stack.
The acquisition is the first step toward Credit Sesame’s international business expansion plans.
Later this year, Credit Sesame’s credit services will be integrated with Stack’s digital banking offering to bring cash and credit management to Canadian consumers.
Credit Sesame and Stack began a partnership in late 2019, when they created Sesame Cash, a new no-fee digital banking service that helps consumers grow their cash and credit together in one place.
The credit and loan company began rolling out Sesame Cash to a limited number of existing customers in March and, after two months of a successful pilot, opened up general availability in mid-May.
More than 200,000 customers have signed up for Sesame Cash in less than a month, and the demand continues to surge with thousands of new accounts per day.
Adrian Nazari, chief executive officer and founder of Credit Sesame, said of the acquisition: “Together with Stack, we are combining the power of smart banking and AI-driven credit management to create a new kind of personal finance.”
“How much cash you have, and how and when you use your cash, have a big impact on your credit. Adding cash management to our credit platform was a natural next step to better help consumers manage their overall financial health, and it creates a unique benefit for our consumers and financial partners.”
All Stack employees have joined the credit and loan company, including executives Miro Pavletic, Nicolas Dinh and Ranjit Sarai. Canada-based employees will continue to work out of the existing Stack office in Toronto.
Pavletic, who is now general manager of Canadian and international business, said: “Credit Sesame and Stack share the belief that technology can help democratise access to smarter services and stronger support to help consumers achieve financial wellness.”
“We’re excited to join the Credit Sesame team to help consumers in the US and Canada keep as much of their money in their pockets as possible, help them grow their credit, and give them access to the right credit products at the right time.”