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Grain is rethinking credit with loans based on active cash flows, and not credit history

  • Grain allows customers to attain a revolving line of credit through their existing debit card without issuing a physical credit card.
  • The firm wants to help customers with daily spending while allowing them to build a good credit score.
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Grain is rethinking credit with loans based on active cash flows, and not credit history

Grain, a fintech firm out of Oakland, California, is rethinking how to provide Americans with credit. The firm considers currently available credit options to often be unfair, ruthless, and even discriminatory. Their solution is a revolving line of credit that does not look at the applicant’s past, i.e. their credit history, but instead reviews their present situation, i.e. their active income and cash flow. The firm was co-founded in 2017 by Christian-Robert Joseph, who previously worked as a product manager at Dropbox, Patrick De Suza, who spent a decade at Goldman Sachs, and Carl-Alain Memnon, who worked at Virtu Financial.

A CreditWise survey found finances to be the number one cause of stress in the US (73%), ahead of politics (59%), career (49%), and family (46%). The stress intensifies as we move down the generations, with the vast majority of Gen Z (82%) and Millennial respondents (81%) reporting that finances are at least somewhat stressful for them. 

These personal finance insecurities make sense as we emerge from the uncertainty of the pandemic. Many Americans lost their jobs or suffered heavy losses to their businesses. Their credit scores suffered, causing them to fall behind on their payments and take on more loans. The anxiety is still fresh, and even though some 42% of the respondents expect their financial situation to improve over the next year, it certainly will not settle anytime soon.


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