Hatch Bank, a tech-forward sponsor bank, has announced a partnership with Thrive Financial, a financial technology platform specializing in point-of-sale financing for home improvement projects, with Hatch serving as the originating bank for specific loans sourced via Thrive’s platform.
This embedded lending collaboration aims to increase sales for contractors and expand consumer access to credit for home improvement projects. The companies note that inadequate financing tools can lead to a loss of up to 30% of potential sales in the home improvement sector due to limited access and awareness of financing options.
Through the partnership, Thrive facilitates consumer access to financing by collaborating directly with contractors and home service providers. This involves integrating a simplified loan application into existing home improvement SaaS (software-as-a-service) experiences at the point-of-sale, allowing consumers to evaluate financing options during their purchasing decisions. The combination of Thrive’s modern loan application and servicing platform with Hatch’s custom solutions and lending capabilities seeks to enhance the financing experience for home improvement merchants.
Consumers stand to benefit from broader purchasing power, a range of options catering to various credit profiles, and potentially lower-cost solutions for qualified borrowers.
Jeffrey Green, Interim President of Hatch Bank, stated, “Hatch’s partnership with Thrive demonstrates our continued commitment to partnering with innovative and experienced home improvement and home efficiency fintech platforms. We’re excited to be working with the experienced team at Thrive to provide more borrowers with access to embedded lending experiences, empowering consumers through frictionless financing optionality.”
Beyond its role as the originating bank, Hatch also supports Thrive’s capital markets strategy, offering efficient capital solutions to assist Thrive in navigating the private capital landscape.
Ryan Cannon, Co-Founder and Chief Risk Officer of Thrive Financial, commented, “To build a modern home improvement lending platform from the ground up, we needed a bank partner with flexible financing capabilities and extensive experience in sponsor banking. The Hatch team’s sponsor banking expertise, capital markets fluency, and understanding of risk management makes them an ideal partner for us in our mission to simplify and broaden access to home improvement financing, benefiting consumers and businesses alike.”
Hatch Bank, headquartered in San Marcos, California, operates as a purpose-built, tech-forward sponsor bank. It focuses on providing specialized financial products and services, offering tailored financial solutions, industry expertise, and collaborative partnerships to lending partners. The bank offers various embedded lending solutions, including solar and healthcare financing, commercial cards, and retail point-of-sale, and has approximately $150 million in total assets as a member of the Federal Deposit Insurance Corporation.
Thrive Financial provides a technology platform designed to connect merchants, consumers, and financial institutions. It offers home improvement merchants access to a full spectrum product suite through its partner banks, featuring industry-leading approval rates, deep analytics, risk management, and white-glove servicing. By partnering with financing providers, Thrive aims to democratize credit access for homeowners and support business growth for merchants.
