FinWise Bank Partners with Earnest to Originate Private Student Loans
FinWise Bancorp announced on February 13, 2024, that its subsidiary FinWise Bank entered a strategic partnership with Earnest, a fintech lender focused on private student loans. Under the arrangement, FinWise Bank will originate and support Earnest's private student loan portfolio, acting as the sponsor bank that provides the banking charter and regulatory framework. Earnest is known for offering flexible repayment terms and low interest rates aimed at making higher education financing more accessible.
The partnership follows the established BaaS sponsor bank model, where a chartered bank originates loans on behalf of a fintech partner. For FinWise, the deal expands its portfolio of fintech lending partnerships and diversifies its loan origination revenue. For Earnest, the relationship provides a compliant origination channel.
Specific financial terms of the partnership were not disclosed in the announcement.
- Reinforces FinWise Bank's position as an active sponsor bank in the fintech lending ecosystem
- Adds student lending to the growing list of verticals served through bank-fintech origination partnerships