Vantage Bank has selected digital banking service provider Unit to improve its core digital banking offerings and provide embedded finance capabilities. 

Community banks don’t have the resources to execute rapid, high-quality digital transformations which has seen their share of the U.S. banking market decline by 50% over the past 20 years, a Unit spokesperson told Bank Automation News.

“Embedded finance — also known as banking-as-a-service — has emerged as a proven way to connect with new communities and grow revenue,” the spokesperson said. 

The $4.2 billion bank will tap Unit’s solutions via APIs, the spokesperson said, adding that smaller FIs typically don’t have resources to build the API infrastructure they need to enable embedded finance, so they turn to vendors like Unit to improve their offerings. 

Unit’s customers include $722 million Thread Bank and inventory management solution provider Envelope, according to the company’s website. 

OneMain Financial selects Pagaya for auto lending

Financial institution OneMain Financial tapped AI-lending solutions provider Pagaya Technologies to expand its auto lending capabilities and increase consumer offerings. 

Pagaya’s AI-driven solution uses data points, like loan repayment behavior, to create a higher approval rate for loans to nonprime consumers, Sanjiv Das, president at Pagaya, told BAN. 

“The delivery of those models is done through a very tight API integration,” Das said. “A loan that a partner rejects automatically comes through our API into our underwriting system, and our underwriting system then approves our client’s loan.” 

A growing number of financial institutions are looking to vendors like Pagaya to improve their loan origination efficiency and manage compliance, Das said, adding that Pagaya also helps securitize loans and sell them to private credit companies. 

Pagaya aims to expand its relationship with the $22.7 billion OneMain Financial by providing underwriting for personal loans by the first half of 2025, Das said. 

SavvyMoney, Constellation Partners team up

SavvyMoney, which provides personal finance management tools, has teamed up with cloud-based banking solutions provider Constellation Partners to provide financial institutions with credit improvement services and financial data analytics for their customers. 

“All our financial institution partners recognize the need to offer their members and customers comprehensive financial wellness solutions,” a Constellation Partners spokesperson told BAN. “Personal finance tools are becoming essential for building deeper consumer relationships, fostering loyalty and driving engagement.” 

SavvyMoney’s solution will be offered via API and will target credit unions and community banks, the spokesperson said, adding that “these institutions are committed to serving their members and customers while providing exceptional value.” 

Farmers Insurance Federal Credit Union, Catalyst Corporate Credit Union and Everwise Credit Union are some of Constellation Partners’ customers, according to the company’s website. 

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