Avant broadens its digital banking capabilities with challenger acquisition

“Avant is following the lead of other alternative lenders that have tied up with banks to increase profitability or expand into new credit products.
LendingClub’s recent acquisition significantly reduced its cost of funds. By buying Radius Bank, the alt lender reduced its borrowing costs by 90% from the previous year.
SoFi’s forthcoming transaction allows it to offer new lending products. The online lender’s recent purchase of Golden Pacific Bancorp is already enabling it to expand its credit solutions into new areas: SoFi launched its first-ever credit card alongside the acquisition and subsequently added auto refinancing to its growing lineup.”