Pave, a marketplace lender, has partnered with Cross River Bank of Teaneck, N.J., to help it expand its online, short-term loan product nationwide.
The New York lender reached an agreement with the $344 million-asset Cross River to be its chartering bank, according to a spokeswoman. With the agreement, Pave has expanded the test program of its lending platform from its home state to nationwide.
Cross River has similar partnerships with several other marketplace lenders, including Marlette, Upstart and Affirm.
Separately, Pave said it recently closed an investment round with RPM Ventures in Ann Arbor, Mich., and Maxfield Capital in New York. Terms of the investment were not disclosed.
Pave mines data to underwrite loans to millennials, a group whose members typically have not built lengthy credit histories. The company uses in-house metrics to determine an applicant's earning potential and employability through work history, education and telephone bills. Pave makes loans of up to $25,000 with rates of 6% or higher.