Cross River Bank is deepening its small-business offerings with the purchase of Betterfin, a startup backed by Reddit Inc. co-founder Alexis Ohanian.
Betterfin is now owned by CRB Group Inc., Cross River Bank’s parent company, the lender said in a statement that didn’t disclose terms. Betterfin’s workforce is joining Cross River’s nearly 700 employees globally.
The more than decade-old Cross River, which partners with various financial technology companies and marketplace lenders, will gain Betterfin’s software to help digitize parts of the small-business lending process including origination and underwriting. Both Cross River and Betterfin worked on efforts with the Small Business Administration’s Paycheck Protection Program during the height of the pandemic last year, with Cross River helping to originate loans and Betterfin building a tool to guide business owners through the application process.
“With the addition of Betterfin’s technology stack, our core infrastructure and offerings will become exponentially more powerful as we continue to support our partners,” Gilles Gade, the founder, president and chief executive officer of Cross River, said in a statement.
— By Katherine Chiglinsky and Max Reyes (Bloomberg Mercury)