For Detroit-based Ally, the Fair Square acquisition marks its second attempt to re-enter the credit card market after it terminated a $2.6 billion deal for the much larger CardWorks in 2020 amid the fallout of the pandemic. Marlette Funding, which operates the Best Egg consumer-lending platform, also expanded widely last year in Brandywine Hundred while others like Mercury Financial, which offers its own near-prime credit card, are growing at the Wilmington Riverfront. "We are excited to continue delivering compelling products with growing momentum as we join the Ally team." The growing firm is one of a handful of so-called fintech, or financial services technology, companies growing quietly in the greater Wilmington area. "Fair Square was built on the premise of providing fair and transparent credit card offerings," Habgood said in a statement. Today, Fair Square employs 86 people in Wilmington, managing about 693,000 cardholders with $816 million in loan balances. The state of Delaware also aided Fair Square’s expansion with a $779,000 taxpayer-backed Strategic Fund grant in 2017 that supported its location of offices at the Brandywine Building in downtown Wilmington and hiring additional staff to manage its data analytics, data mining, marketing and credit underwriting. Pandit, along with former E*Trade CEO Steven Freiberg, would join Fair Square’s board of directors, providing valuable guidance and credibility to the startup. Led by CEO Rob Habgood, the startup quickly landed the support of notable investors, securing $200 million by financial services-focused private equity firm Pine Brook Road Partners and $100 million from investment firm The Orogen Group, led by former Citi CEO Vikram Pandit. Founded five years ago by a handful of banking veterans from Bank of America, JPMorgan Chase, Capital One, Citigroup and elsewhere, Fair Square launched its sub- and near-prime credit card Ollo in 2017. WILMINGTON – Fair Square Financial, one of Delaware’s fastest-growing financial services startups, was acquired Wednesday by the online auto lending giant Ally in a $750 million all-cash deal. Fair Square Financial, seen here at their 2019 ribbon cutting in Wilmington, has been acquired by lending giant Ally. “The addition of Fair Square and its credit card offerings will enhance our suite of consumer products and aligns with our long-term strategy to be the leading full-service digital-bank,” Ally CEO Jeffrey Brown said in a statement. In 2019, it closed down its own proprietary cash-back card issued with TD Bank. Marlette Funding, which operates the Best Egg consumer-lending platform, also expanded widely last year in Brandywine Hundred while others like Mercury Financial, which offers its own near-prime credit card, are growing at the Wilmington Riverfront.įor Detroit-based Ally, the Fair Square acquisition marks its second attempt to re-enter the credit card market after it terminated a $2.6 billion deal for the much larger CardWorks in 2020 amid the fallout of the pandemic. The growing firm is one of a handful of so-called fintech, or financial services technology, companies growing quietly in the greater Wilmington area. “We are excited to continue delivering compelling products with growing momentum as we join the Ally team.”
“Fair Square was built on the premise of providing fair and transparent credit card offerings,” Habgood said in a statement. WILMINGTON – Fair Square Financial, one of Delaware’s fastest-growing financial services startups, was acquired Wednesday by the online auto lending giant Ally in a $750 million all-cash deal.įounded five years ago by a handful of banking veterans from Bank of America, JPMorgan Chase, Capital One, Citigroup and elsewhere, Fair Square launched its sub- and near-prime credit card Ollo in 2017.
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