Hank Payments Partners with FinWise Bank for BaaS Deposit and Lending Program
Hank Payments Corp. (TSXV: HANK) announced a strategic partnership with FinWise Bank (NASDAQ: FINW) in March 2024 under a customer origination program agreement. Under the deal, Hank's proprietary algorithms for automated cash flow management are paired with FinWise's API-driven infrastructure for deposits, lending, and payments. Customer deposits from Hank users will be housed at FinWise, generating fee revenue for Hank.
FinWise conducted thorough due diligence and compliance checks in line with its regulatory-first approach as sponsor bank. For FinWise, the partnership represents an expansion into payments processing, diversifying its revenue streams and deposit base. Hank CEO Michael Hilmer praised FinWise's technology focus, while FinWise CEO Kent Landvatter highlighted expansion into payments and relationship banking.
The partnership is designed to deliver immediate enhancements to consumers and businesses using Hank's budgeting and payments platform. No specific financial terms were disclosed.
- FinWise Bank's expansion into payments processing signals further diversification of sponsor bank revenue models beyond lending.
- Demonstrates continued demand for sponsor bank relationships among smaller fintech platforms seeking deposit and payments infrastructure.