Digital lender Avant acquires Zero Financial and digital banking brand Level

Avant, a Chicago-based digital lender that’s raised more than $600M in equity funding, and has connected more than 1.5 million customers to $7.5B in loans and 400,000 credit cards, has acquired Zero Financial and its digital challenger bank Level. Terms of the deal were not disclosed.

Why should we care?
Avant, which was founded in 2012, aims to reach underserved consumers. With the acquisition of Level, a digital banking startup that’s acquired 1.5M customers, Avant can expand its offerings for clients through a comprehensive suite of products and services. With Level, Avant can “provide underbanked and unserved consumers with a full ecosystem of transparent financial products and services with great features and rewards, all in one mobile app," James Paris, CEO of Avant, said in a statement. Level, a 5-year-old digital banking startup, offered cash-back debit cards and debuted a high-yield savings account offering last year. Level’s parent company Zero Financial also developed a “debit-style credit card” to help consumers manage their personal finances. As part of the deal, Level’s engineers, product designers and others will join Avant and integrate deposits into Avant's suite of digital banking and credit products. Level partnered with Evolve Bank & Trust to offer its banking products. “Avant shares our mission to challenge the status quo by bringing innovative financial services products to consumers who might otherwise be unable to access them," said Bryce Galen, co-founder and CEO of Zero Financial.