Galileo Launches Secured Credit with Dynamic Funding to Simplify Credit-Building for Consumers

Sandy, Utah, September 25, 2024

Galileo Financial Technologies, a Sandy, Utah-based financial technology company owned by SoFi Technologies, announced it has launched Secured Credit with Dynamic Funding. Built to help fintechs, banks and other businesses serve underbanked and underserved customers, Galileo Secured Credit with Dynamic Funding simplifies the secured credit process, making it easier for consumers to manage their debit and credit accounts. This streamlined solution also reduces the risk for lenders by backing credit with secured deposits.

Over 45 million Americans are either credit unserved or underserved, according to a global study from TransUnion. Traditional secured models suffer from complexities around where consumers use their funds. Customers face the dilemma of keeping their cash in their demand deposit account (DDA) for use with their debit card or in their collateral account to use as secured credit. The behavior of dividing these funds puts consumers at a disadvantage throughout their credit-building journey.

Galileo's Secured Credit with Dynamic Funding solution resolves those complexities. By automating the movement of funds between accounts, customers using this feature can manage all their money in one single account, including both debit and credit transactions. It eliminates the need for users to make manual transfers between collateral and DDA accounts when the need arises to make larger purchases. With this solution, cardholders can manage one "available to spend" balance, streamlining the process and ensuring real-time updates of transactions.

David Feuer, Chief Product Officer, Galileo

“Dynamic Funding gives our clients an edge in offering flexible, secured credit with debit to underserved consumers, helping them build credit and save without the typical friction,” said David Feuer, Galileo's Chief Product Officer. “With this solution, financial institutions, fintechs and other businesses can provide a user-friendly experience that empowers consumers to manage their finances in real-time.”

Key Features of Galileo Secured Credit with Dynamic Funding:

Simplified Experience: DDA and collateral funds are kept together in a single pool, ready to be spent as debit or credit, enabling larger purchases when needed.
Customer-Centric Secured Credit: This credit product helps consumers avoid falling into a debt cycle by combining DDA and collateral balances. When approved for a secured credit card, there is no immediate impact on their spending account. Once their credit is built, retrieving their deposit doesn’t affect their credit score–it was always accessible to them.
Differentiated Product Offering: Galileo clients can now offer a unique secured credit solution. With seamless automation and ease of use, Galileo Secured Credit with Dynamic Funding provides a compelling value proposition that helps attract and retain customers–especially those new to credit or rebuilding their financial profiles.

Galileo Secure Credit with Dynamic Funding demonstrates the company’s commitment to providing innovative financial solutions that meet the evolving needs of fintechs, financial institutions and businesses, while driving financial inclusion for underserved markets.

For more information about Galileo's secured credit products, visit https://docs.galileo-ft.com/pro/docs/secured-credit.