Fiserv, a global provider of payments and FinTech solutions, has announced the launch of FlexLine Advance, that lets consumers and small businesses facing income disruption and economic stress due to the COVID-19 pandemic to swiftly and affordably access funds from their existing credit lines and deposit directly into their checking or savings accounts.

According to Fiserv research, 72% of consumer credit lines are currently unused, representing an average of about $4,000 available per account, and 83% of SMB owner credit lines are currently unused, representing an average of about $15,000 available per account.

FlexLine Advance is an alternative to traditional small-dollar loans that allows cardholders to access available credit with no additional credit application, adjudication or origination fees, with funds deposited into their bank account. Cardholders can use these funds to pay for expenses where credit card payment is typically not accepted, such as rent or mortgages, utilities and other living expenses, while SMBs can satisfy payroll, rent, utilities, and supplier and insurance obligations.

“Accessing available credit card funds will help cardholders make purchases or pay expenses where card payments are not accepted. With FlexLine Advance, Fiserv allows financial institutions to quickly distribute funds during this time of need and retain account relationships that could be lost to a competing financial institution,” said David Shipper, senior analyst at Aite Group.

FlexLine Advance allows participating FIs to define three lending options, including the interest rate and payment period, and cardholders use their online account management tool to select their preferred plan, choose their loan amount and select the bank account to which the money should be sent.

The workflow is as follow:

• Upon logging in to Online Account Management (OAM), eligible consumers and small business owners will see an announcement and a link for more information.
• After clicking the link, they’ll see repayment terms and definable interest rate options. They can also request an advance from their credit line by providing a Routing and Transit Number, and Account Number.
• Funds will be deposited electronically via ACH into their account within approx. two days.

“In the current COVID-19 environment, many consumers and small businesses are seeking out practical options that allow them to meet ongoing expenses. FlexLine Advance ensures nothing is standing in the way of getting funds into the hands of people and firms who need them as quickly as possible,” said Chad Peck, vice president, credit, Card Services at Fiserv.

Established since 1984, Fiserv is a global provider of payment and financial services technology. The FinTech aspires to move money and information in a way that moves the world. The FinTech recently collaborated with Clinc to launch Conversational Banking capability.