Bringing Financial Wellness To Consumers? – Here's How 'Hank' Hopes To Help Customers Eliminate Debt And Build Credit

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Ever had to deal with a loan that just wouldn’t go away?

If you’re an average American citizen, the answer is probably yes. In 2021, a CNBC report showed that the average American has $90,460 in debt. In the same year, the Federal Reserve further confirmed the debt crisis, announcing that American household debt hit a record $14.6 trillion the same year.

Hank Payments Corp. HANK, says it helps remedy this crisis every day. As a fintech SaaS platform, Hank Payments specializes in helping make Americans become financially well by improving their probability of making bill and loan payments automatically and on time and giving them the ability to pay their loans off faster by automating their cash management.

By automatically withdrawing partial loan payments bi-weekly on customer paydays, Hank reduces the roller coaster-like experience of having uneven available income at different points in the month. With 64% of Americans living paycheck to paycheck, Hank says this service can help reduce some of the stress Americans feel managing their bills every month.

Bites By The Numbers

Hank Payments reports the following stats:

• Over 40,000 active paying customers across theU.S.Gross margins approaching 90% 
• 100% fee-driven revenue model – Hank takes no balance sheet risk and does not loan money to perform their services
• Handles over $1.2 billion of liabilities for customers 
• Delinquencies drop by close to 50% for consumers who use Hank 

Hank Payments aims to further improve the financial wellness of Americans through the creation of wellness partnerships, an initiative it has already kickstarted with the New York State Automobile Dealers Association. 

Additionally, Hank is leveraging its success in the small and medium-sized channel market to advance deals in the enterprise space with banks, lenders, and other institutions with potentially millions of customers that can benefit from their platform. It appears those deals will take the shape of a SaaS licensing model where users or enterprise accounts pay monthly fees for users to manage their bill payments.

Any win in this massive market would appear to have the effect of dramatically and quickly increasing Hank’s user counts and associated annual recurring revenue (ARR), a typical strong measure of SaaS company success. With Hank’s margin already approaching 90 percent, one would expect these developments would dramatically increase long-term cash-flow.

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This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

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