HSBC parnters with Avant to offer personal loans

HSBC and Avant Partnering to Bring Unsecured Loans to Customers

Beginning next year, HSBC Bank will connect with Chicago based Avant Inc. to offer personal loans of up to $30,000 to it’s U.S. customers. Loans with terms of up to five years will be available.

Our platform provides HSBC with a tried and true technology solution that is customizable and provides the tools to help grow its lending business. This includes fraud prevention, account verification, risk assessment, marketing, and full lifecycle customer service.”

James Paris, Avant’s Chief Strategy Officer 

HSBC will be making use of Avant’s Amount technology to bring customers who are searching for personal loans access to a simple, digital borrowing platform. Avant’s Amount technology provides strong institutions like HSBC with the necessary platform for secure, digital banking.

Avant’s SaaS side

Avant operates as two businesses under one roof. First, you have the installment loans platform we all know. But many haven’t heard of Avant’s software as a service (Saas) side of things. Small businesses loans and modest personal loans are not effective for most banks. Therefore, many don’t offer small personal loans anymore. Avant’s Amount platform allows banks to drop the labor-intensive underwriting model of the past. Other banks, such as Goldman Sachs with Marcus, have created their own platforms. But creating and implementing these platforms is not easy or cheap. Avant’s Amount gives banks a fast-track to a smarter and cheaper underwriting model.

Every year millions of consumers take out a loan to pay for unexpected expenses, consolidate debt or for needed home improvements, among other things. By adding personal loans to our expanding product suite, we’re meeting the needs of today’s consumers who want a safe, fast and easy way to borrow money online.”

Pablo Sanchez, HSBC’s Head of Retail Banking

HSBC opens Avant’s platform to a larger market

Pointing to the significant growth in personal lending over the past year, Pablo Sanchez, HSBC’s head of retail banking and wealth management for the U.S. and Canada, had this to say about the their newest offering: “Every year millions of consumers take out a loan to pay for unexpected expenses, consolidate debt or for needed home improvements, among other things. By adding personal loans to our expanding product suite, we’re meeting the needs of today’s consumers who want a safe, fast and easy way to borrow money online.”

James Paris, Chief Strategy Officer of Avant, added: “Our platform provides HSBC with a tried and true technology solution that is customizable and provides the tools to help grow its lending business. This includes fraud prevention, account verification, risk assessment, marketing, and full lifecycle customer service.”

Avant and HSBC’s partnership in a nutshell

Credit approval for most customers will be available within minutes, and funding will typically be released the next day. Rates will range from between 5.99% to about 20% depending on each applicant’s creditworthiness.

HSBC has primarily been known in the U.S. for offering a line of personal and business credit cards. With close to 230 U.S. branches, the bank’s presence is substantial. With this strong step into digital lending, they will be expanding the company’s reach to a much broader customer base.