Mission Lane, a purpose-driven credit card company, has snagged Capital One veteran and ex-Barclays US Consumer Bank chief Shane Holdaway as its new CEO. The company also announced that it has raised more than half a billion dollars in equity and debt financing. This includes a Series A investment of more than $200 million from Invus Opportunities, LL Funds LLC, QED Investors, and funds managed by Oaktree Capital Management. This capital will be used to scale the company so that it can help more of the estimated 100 million people in the US who have lower credit scores or who have yet to build the credit history necessary to receive a score. The company has also secured a new $300 million debt facility provided by Goldman Sachs (Senior) and Oaktree.
Mission Lane separated from LendUp in December 2018 with the goal of providing better credit cards with easier-to-understand terms to consumers whose options are limited because of their lower credit scores. “Unlike most banks and fintechs, Mission Lane is focused on helping people who are working to build or rebuild their credit,” said newly-appointed CEO Shane Holdaway. According to Holdaway, many of these individuals were left behind following the financial crisis and struggle to improve their economic status due to a lack of access to quality financial products. “The few loans and credit cards that are available to them are often complex, difficult to decipher, and laden with inexplicable fees,” said Holdaway. “And while we know we can’t fix structural inequality or prevent hard times from coming,” Holdaway continued, “we can certainly provide a lane or path forward through credit that has terms that are both better and easier to understand.”
Mission Lane combines modern technology and advanced data and analytics with deep industry experience to deliver better products and experiences for people trying to build or rebuild their credit. As CEO, Shane Holdaway joins an accomplished team that includes industry veterans and innovators from such leading companies as Capital One, Google, and PayPal. “Shane brings great vision and experience to a team that has the skills, knowledge, and passion to re-imagine the credit card business,” said Mission Lane Chairman, QED Investors Managing Partner, and Capital One co-founder Nigel Morris. “The market opportunity is enormous and the fundamentals are there to marry purpose and profit in building a large enterprise capable of helping millions of people.”
“Mission Lane is poised for significant growth and powerful innovation. We believe that ‘credit done right’ can create a virtuous cycle—as we succeed in helping customers build and rebuild their ‘credit credibility’ and thrive, our business will also grow and prosper,” said Holdaway.
Mission Lane is a purpose-driven credit card company that leverages advanced technology, data analytics, and machine learning to provide a dignified customer experience to people who are working hard to build or rebuild their credit. Mission Lane’s credit cards have terms that are better and easier to understand than most of the alternatives available to people with less-than-pristine credit or limited credit history. The company’s digital self-service tools also make it easier for customers to stay on top of their accounts, further helping them succeed in improving their credit scores. To date, the company has issued hundreds of thousands of their best-in-class, mobile-first credit cards, earning top customer ratings on CreditKarma for their market segment. Mission Lane was established as a standalone company in December 2018. It had previously operated as the credit card division of LendUp.