Medallion Bank Announces Fintech Strategic Partnership With TriBeam Financial
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Medallion Bank's partnership with TriBeam Financial marks a strategic move to diversify its consumer loan portfolio. The focus on financing home solar systems is timely, considering the growing consumer interest in renewable energy solutions. This partnership could enhance Medallion Bank's loan origination volume, potentially increasing its interest income. The association with a fintech company like TriBeam, which has a considerable network of installers, could also streamline the loan application process, thereby improving customer experience and satisfaction. However, the solar financing market is competitive, with various players offering similar services. Medallion Bank will need to leverage TriBeam's technology effectively to differentiate itself and capture market share.
The residential solar equipment sector is witnessing an upward trend, driven by consumer awareness and favorable government policies. Medallion Bank's entry into this market through TriBeam Financial could tap into this growing demand. This move is likely to be received positively by investors as it signals Medallion's adaptability and commitment to growth sectors. However, it's important to monitor the performance metrics of this new venture, such as the default rates on solar loans and the operational costs associated with this new partnership. These factors will be critical in assessing the long-term profitability and sustainability of this business line.
Entering the home solar financing market exposes Medallion Bank to new credit risks, particularly in assessing the creditworthiness of customers in a relatively new industry. The success of this partnership will largely depend on the bank's ability to manage these risks effectively. While the partnership could lead to diversification benefits, there is also the risk of dilution of focus from Medallion's core segments. It is imperative for the bank to maintain stringent underwriting standards and to closely monitor the evolving regulatory landscape surrounding renewable energy financing. The bank's risk management strategies will need to evolve in tandem with this new market dynamic.
SALT LAKE CITY, April 11, 2024 (GLOBE NEWSWIRE) -- Medallion Bank (Nasdaq: MBNKP, the “Bank”), an FDIC-insured bank providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with offering loan products and services through fintech strategic partners, announced today it had entered into a definitive agreement with TriBeam Financial, Inc. (TriBeam Financial) to be its finance partner for home solar systems and related products. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).
TriBeam Financial is a fintech company that provides a point-of-sale lending platform for residential solar equipment and home improvement loans in the U.S. through its large network of installers.
Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “We are pleased to add TriBeam Financial to our strategic partnership program. It has the potential to be our largest partner yet and is a great fit for us since it expands our reach within our home improvement lending segment.”
Alexi Evriviades, Founder and Chief Executive Officer of TriBeam Financial, stated, “We look forward to our partnership with Medallion Bank, which brings a wealth of expertise in administering home improvement loans through contractors and offers us the best platform to serve consumers through our national base of solar installers.”
Loan origination activities have started under this agreement.
About Medallion Bank
Medallion Bank specializes in providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners. The Bank works directly with thousands of dealers, contractors and financial service providers serving their customers throughout the United States. Medallion Bank is a Utah-chartered, FDIC-insured industrial bank headquartered in Salt Lake City and is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).
For more information, visit www.medallionbank.com
Forward-Looking Statements
Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, costs, sales, net investment income, earnings, returns and growth. These statements are often, but not always, made through the use of words or phrases such as “remain,” “anticipate” or the negative version of this word or other comparable words or phrases of a future or forward-looking nature, such as “look forward.” These statements may relate to our future earnings, returns, capital levels, sources of funding, growth prospects, asset quality and pursuit and execution of our strategy. Medallion Bank’s actual results may differ significantly from the results discussed in such forward-looking statements. For a description of certain risks to which Medallion Bank is or may be subject, please refer to the factors discussed under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” included in Medallion Bank’s Form 10-K for the year ended December 31, 2023, and in its Quarterly Reports on Form 10-Q, filed with the FDIC. Medallion Bank’s Form 10-K, Form 10-Qs and other FDIC filings are available in the Investor Relations section of Medallion Bank’s website. Medallion Bank’s financial results for any period are not necessarily indicative of Medallion Financial Corp.’s results for the same period.
Company Contact:
Investor Relations
212-328-2176
InvestorRelations@medallion.com
About TriBeam Financial, Inc.
TriBeam Financial, Inc. is a fintech company that provides a point-of-sale lending platform for residential solar equipment and home improvement loans in the U.S. through a national network of installers. TriBeam Financial is based in Boston, Massachusetts. For more information, visit www.tribeamfinancial.com.
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