Highline, a Dallas-based fintech startup, launched today with $4.5 million in seed funding led by Palo Alto-based firms Foundation Capital and Costanoa Ventures, according to a news release.
The startup's goal is to improve access to credit for 40 million Americans with a payroll-linked payment method and craft and enable Americans to take control of their finances based on their income rather than their credit score.
According to the release, by linking their bill payments to their payroll and not their bank account, more people can pay their bills on time and in full, enabling them to access better credit rates and reduce unnecessary fees. It is aimed at the over 40 million Americans who have good jobs but have subprime or no credit scores.
"The majority of Americans are living paycheck to paycheck, resulting in negative consequences like overdraft fees and missed payments," Geoff Brown, CEO and founder of Highline, said in the release. "Highline believes access to better financial solutions begins with reimagining the broken bill payment system."
The founders of Highline have deep banking and lending experience. COO Darin Cline previously worked at Goldman Sachs, and Brown most recently worked at Salary Finance and Santander.
"The vast majority of the US consumer lending industry has sought-after payroll-based lending at one time or another," Zach Noorani, partner at Foundation Capital, said in the release. "But until Highline, it's simply never been possible to do without selling into each employer individually. This is a huge step forward in terms of credit-risk innovation."
According to the release, Highline builds direct access to payroll platforms through Application Programming Interfaces, which can help consumers pay bills on time and in the right amounts by automatically routing them from their paychecks.
"Highline's approach can play a major role in creating more financial inclusion," Amy Cheetham, partner at Costanoa Ventures, said in the release. "Millions of Americans have long been in need of low-cost credit options, and Highline's experienced team is uniquely positioned to do it."
