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  • Writer's pictureBy The Financial District

Empower Expands Global Reach With Strategic Acquisitions

Empower Finance, Inc., a pioneering force in alternative credit underwriting based, has set its sights on revolutionizing the lending landscape with its recent acquisitions of Petal and Cashalo.

Empower Finance, Inc. expands its global footprint with strategic acquisitions of Petal and Cashalo, aiming to revolutionize access to fair credit for underserved consumers worldwide.

These strategic moves mark Empower's foray into the U.S. credit card market with Petal and its expansion into the Southeast Asian credit market with Cashalo.

With a mission to democratize access to fair credit, Empower aims to empower underserved consumers worldwide by providing them with financial opportunities previously out of reach.

Founded in 2016, Empower has rapidly gained traction by employing real-time cash flow analysis, nontraditional data assessment, and machine learning algorithms to evaluate financial responsibility and credit risk.

This innovative approach diverges from traditional credit agency reliance, enabling Empower to extend lines of credit and interest-free advances to three out of four consumers who typically face limited liquidity options.

The acquisitions of Petal and Cashalo represent strategic maneuvers aimed at fortifying Empower's position as a leader in the global fintech arena. By incorporating Petal's expertise in cash flow underwriting and modern digital experiences, Empower gains a foothold in the competitive U.S. credit card category.

Meanwhile, Cashalo's stronghold in the Philippine market provides Empower with the opportunity to address the pressing issue of financial exclusion in the Southeast Asian region.

Warren Hogarth, Co-Founder and CEO of Empower, underscores the shared vision between Empower, Petal, and Cashalo in leveraging technology and alternative data to unlock financial opportunities for underserved populations.

Hogarth expresses confidence in the merger, citing the potential to leverage new product offerings, operational efficiencies, and analytical capabilities to address global credit insecurity challenges.

"In both companies, we found a shared commitment to harnessing technology and rich alternative data to unlock financial opportunity for more people who merit our consideration. I'm confident that by merging Petal and Cashalo into Empower, we amass new product, operational, and analytical capabilities to help alleviate the credit insecurity that billions of people around the world struggle with," added Hogarth.

The significance of these acquisitions is underscored by recent studies revealing the vast underserved market, particularly in Southeast Asia, where millions lack access to formal credit and banking services.

Empower's entry into this market holds promise for improving the financial well-being of millions, with the potential to bridge the funding gap faced by micro, small, and medium enterprises.

Moreover, the impact of credit access on improving quality of life, particularly for women, cannot be overstated.

Women, who are more likely to utilize loans for business and household well-being purposes, stand to benefit significantly from Empower's inclusive approach to credit underwriting and product innovation.


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