August 29, 2023

In a Nutshell: Starting adult life with a meager credit history or a low credit score is never an advantage. But there are financial pitfalls when parents try to get the ball rolling for their children ages 14-25 by adding them to their accounts as authorized users. FreeKick is a secured savings product from Austin Capital Bank that replaces the complexities of credit authorization with a structured deposit account that can build a lasting credit history for children without financial complications. FreeKick helps young people emerge into adulthood with a clean credit profile and a strong credit score.

A catch built into the credit industry puts children and young adults of the Gen Z generation at a disadvantage over more well-established consumers: you need credit to get credit. Lack of significant credit history or a credit score on the higher end of the scale can mean substantially elevated costs for millions of Gen Z consumers moving into financial independence and poised to make milestone credit purchases like homes and cars.

Many parents want to help their children get a healthy financial start to adulthood. The best-known approach to assisting children in building credit is for parents to add them to their accounts as authorized users.

Unfortunately, that comes with several pitfalls that can adversely impact family finances and even put children further behind at a crucial time in their financial life. And that makes the authorized user tradition ripe for disruption.

FreeKick, a secured savings product from Austin Capital Bank, is doing just that by replacing credit authorization with a set-it-and-forget-it deposit account that automatically builds a lasting credit history and a higher credit score for children without risking anyone’s finances.

… continued at:

https://www.cardrates.com/news/freekick-reduces-parental-risk-and-builds-credit-for-kids/

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Many young people in the United States face a common conundrum when entering the job market: It’s difficult to find a job without experience and you can’t get experience without a job.

There’s a similar dynamic at play when it comes to building credit. Millions of young adults don’t have credit histories or scores and may find it difficult to get loans or a line of credit as a result. 

The traditional—or at least most popular—solution to helping young people build credit over the years has been for parents to add their children as authorized users to their own lines of credit. While that’s effective to a degree, Texas-based Austin Capital Bank has developed and launched a new credit-building tool to help young people build credit with relatively little risk.

The product, called FreeKick, is available in 48 states for young people between the ages of 14 and 25, and works as a sort of set-it-and-forget-it credit builder. Parents make an initial deposit and the credit-building happens almost automatically from the customer’s point of view.

Erik Beguin, the CEO of Austin Capital Bank, which he founded in 2006, tells Fast Company that there are roughly 50 million young adults who don’t have credit scores, or who are otherwise credit-invisible and that for years, “the only viable answer to solving that was to add them as an authorized user” to a parent’s credit card.” FreeKick, he says, is designed to be an alternative and a simple one.

… continued at:

https://www.fastcompany.com/90904368/gen-z-credit-history-builder-tool-freekick-austin-capital-bank

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View the complete article here: https://www.consumeraffairs.com/finance/pros-and-cons-being-authorized-user-on-a-credit-card.html

Pros and cons of being an authorized user on a credit card

By Holly Johnson

Published April 28, 2023

Edited by Tammy Burns

Being an authorized user on another person’s credit card can be advantageous when you can’t qualify for credit on your own. Not only do you get a credit card with your name on it that you can use to make purchases, but you can access valuable credit card perks that wouldn’t be available to you otherwise. Perhaps most importantly, an authorized user card can build your credit history, so you can qualify for your own card one day.

If you have the chance to become an authorized user on another person’s credit card and you trust that person completely, this situation can work in your favor. That said, you should have your eyes wide open and a full understanding of what could go wrong.

Key insights

What is an authorized user?

When someone applies for a credit card, they get an account in their name and a physical card to use. They also have the option to add another person to their account as an authorized user.

While authorized users also get a physical credit card with their name on it, only the primary account holder is legally responsible for repayment. Because of this, anyone who becomes an authorized user should make sure they understand how and when their purchases need to be paid back.

Lisa Fischer, the chief lending officer at the fintech company Mission Lane, says it’s crucial for authorized users to demonstrate responsible credit habits if they want to avoid conflict. For the most part, this means tracking spending and only charging purchases they can afford.

“If you run up a bill that can’t be paid off by you or the cardholder, for example, this will negatively impact both of your credit,” she said. “This could cause financial strain as well as strain on your personal relationship with the cardholder.”

… continued at:

https://www.consumeraffairs.com/finance/pros-and-cons-being-authorized-user-on-a-credit-card.html

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Austin, TX (Aug. 16, 2022) – Fueled by record-revenue over the past three years, Austin Capital Bank was named to Inc. Magazine’s Inc. 5000 list of the fastest-growing independent companies for the seventh consecutive year.

Austin Capital Bank, a leader in digital banking products and responsible financial innovation founded in 2006, made the list once again reporting three-year revenue growth of 334%, which was good enough for #1,738 on this year’s annual list. Austin Capital Bank ended 2021 with $49.3 million in revenue.

Each year Inc. Magazine ranks the fastest growing private companies in America based on percentage revenue growth over the past three years. The Inc. 5000 list represents a unique look at the most successful private companies within the American economy’s most dynamic market segment – independent small and midsized businesses. Companies such as Microsoft, Dell, Yelp, Zillow, and many other well-known brands gained their first national exposure as honorees of the Inc. 5000.

“Being included in the Inc. 5000 for the seventh consecutive year is something we are truly proud of, as few companies can sustain the rapid and consistent revenue growth year after year to be included in this prestigious group of companies on an annual basis,” said Erik Beguin, founder and CEO of Austin Capital Bank. “Making the list isn’t really our goal, but the annual recognition is gratifying in that it speaks to the fact we are achieving our goal of doing well by doing good.”

Austin Capital Bank INC 5000 Historical Ranking

Year:     Rank

2022:      1,738

2021:      1,066

2020:      1,134

2019:      2,060

2018:      3,289

2017:      3,260

2016:      4,001

About Austin Capital Bank

Austin Capital Bank is an FDIC-insured, independent community bank located in Austin, Texas. Austin Capital Bank, consistently recognized as a top performing financial institution, was ranked as the number-one consumer lender in the nation in 2021 for banks under $500 million in assets, and has been ranked on consecutive INC. 5000 lists since 2016. Austin Capital Bank is unique among community banks in that it defines ‘community’ as a common set of needs and values vs the traditional geographic focus of community banks. Austin Capital Bank offers proprietary branded digital banking services nationwide enabled by its own custom-built banking-as-a-service platform and digital banking products group.

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Austin, TX (Aug. 17, 2021) – With the release today of the annual Inc. 5000 list of the fastest-growing private companies, a familiar name appeared for the sixth consecutive year: Austin Capital Bank.

Austin Capital Bank, a leader in digital banking products and responsible financial innovation, made the list once again after reporting a record three-year revenue growth increase of 448%. The Texas-based bank ended 2020 with more than $38 million in revenue, a ten-fold increase from 2015, when it first appeared on the Inc. 5000 list.

Each year Inc. Magazine ranks the fastest growing private companies in America based on percentage revenue growth over the past three years. The Inc. 5000 list represents a unique look at the most successful private companies within the American economy’s most dynamic market segment – independent small and midsized businesses. Companies such as Microsoft, Dell, Yelp, Zillow, and many other well-known brands gained their first national exposure as honorees of the Inc. 5000.

“Six straight years of making this list is something we are all proud of,” said Erik Beguin, founder and CEO of Austin Capital Bank. “Few companies can sustain this level of impressive revenue growth and it becomes more difficult to make the list every year as we grow. We view our inclusion on the list for so many consecutive years as a direct reflection of our products, mission, and people.”

About Austin Capital Bank

Austin Capital Bank is a 5-Star rated, FDIC-insured, independent community bank located in Austin, Texas. Austin Capital Bank is consistently recognized as a top performing financial institution and has been ranked on consecutive INC. 5000 lists since 2016. Austin Capital Bank is unique among community banks in that it defines ‘community’ as a common set of needs and values vs the traditional geographic focus of community banks. Austin Capital Bank offers proprietary branded digital banking services nationwide enabled by its own custom-built banking-as-a-service platform and digital banking products group.

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Austin, TX (July 01, 2021) – In its annual ranking of the top community banks in the country, The Independent Community Bankers of America ranked Austin Capital Bank the nation’s number one consumer and mortgage lender for 2020, it was announced today by the trade organization.

Facing one of the most turbulent periods in banking last year – given the uncertainty and upheaval of the COVID-19 pandemic – community banks doubled down on digital banking, financial product ingenuity, and dedication to their communities to succeed. Leading the way was Austin Capital, which received a near-perfect score of 99.3 from ICBA for its lending efforts.

Positioning itself as a technology-focused and community-driven bank proved to be a tremendous asset for ACB, as digital-first banking institutions were able to separate themselves from most competitors.

“Our clear focus on technology and innovation has certainly bolstered our lending business,” said Erik Beguin, CEO and founder of Austin Capital Bank.  “It was a difficult year for all community banks, but those that have adapted to the changing needs of their customers – and their communities – will thrive. I believe we are well positioned to achieve continued success.”

ICBA calculated a lender score out of 100 for each community bank, using FDIC data for 2020. The score combines the average of the bank’s percentile rank for lending concentration and for loan growth over the past year in each lending category. Scores were adjusted for loan charge offs in each category at certain percentile thresholds.

Austin Capital Bank finished at the top in the ICBA’s “Consumer and Mortgage” category for independent community banks with less than $500 million in assets.

The bank launched its mortgage division in 2018 and now has 14 loan production offices around the country. Its proprietary digital banking technology platform allows Austin Capital Bank to offer financial services securely online nationwide.

The Independent Community Bankers of America is the nation’s voice for community banks with its mission to create and promote an environment where community banks flourish. The ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and innovative products and services.

“I’m passionate about the community bank model,” Beguin said. “The reason I started the bank is that a community bank is one of the only entities that multiplies the wealth in the community it serves. And this top ranking by the ICBA only proves we are on the right track.”

About Austin Capital Bank

Austin Capital Bank is a 5-Star rated, FDIC-insured, independent community bank located in Austin, Texas. Austin Capital Bank is consistently recognized as a top performing financial institution and has been ranked on consecutive INC. 5000 lists since 2016. Austin Capital Bank is unique among community banks in that it defines ‘community’ as a common set of needs and values vs the traditional geographic focus of community banks. Austin Capital Bank offers proprietary branded digital banking services nationwide enabled by its own custom-built banking-as-a-service platform and digital banking products group.

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Austin, TX (Dec. 17, 2020) – Erik Beguin, founder and CEO of Austin Capital Bank, has been named for the second time to serve on the Board of Governors of the Federal Reserve System to serve on its national Community Depository Institutions Advisory Council (National CDIAC), it was announced today by the Federal Reserve System.

The National CDIAC advises the Board on the economy, lending conditions, and other issues of interest to community depository institutions. Members are selected from representatives of commercial banks, thrift institutions, and credit unions serving on local advisory councils at the 12 Federal Reserve Banks. One member of each of the Reserve Bank councils serves on National CDIAC, which meets twice a year with the Federal Reserve Board in Washington, DC.

“It was an immense honor last year to have been selected by the Board of Governors of the Federal Reserve System to serve in an advisory role, but it’s truly humbling to have been nominated a second consecutive time to offer my services,” said Beguin. “Being able to provide counsel to our nation’s central bank on behalf of local community banks and communities during these challenging times will hopefully have a positive impact for the industry and society.”

Board of Governors of the Federal Reserve System

The Board of Governors–located in Washington, D.C.–is the governing body of the Federal Reserve System. It is run by seven members, or “governors,” who are nominated by the President of the United States and confirmed in their positions by the U.S. Senate. The Board of Governors guides the operation of the Federal Reserve System to promote the goals and fulfill the responsibilities given to the Federal Reserve by the Federal Reserve Act. All of the members of the Board serve on the FOMC, which is the body within the Federal Reserve that sets monetary policy for the United States of America.

About Austin Capital Bank

Austin Capital Bank is a 5-Star rated, FDIC-insured, independent community bank located in Austin, Texas. Austin Capital Bank is consistently recognized as a top performing financial institution and has been ranked on consecutive INC. 5000 lists since 2016. Austin Capital Bank is unique among community banks in that it defines ‘community’ as a common set of needs and values vs the traditional geographic focus of community banks. Austin Capital Bank offers proprietary branded digital banking services nationwide enabled by its own custom-built banking-as-a-service platform and digital banking products group.

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Austin, TX (Aug. 20, 2020) – For the fifth consecutive year, Austin Capital Bank, a leader in digital banking products and responsible financial innovation, was named to Inc. Magazine’s “Inc. 5000” list of the fastest-growing private companies in the nation, as it experienced a record 399% revenue growth over the past three years.

The bank, which is known for its digital banking platform and products, moved up nearly 1,000 spots on the 2020 list after moving up more than 1,000 spots in 2019. The bank ranked #1,134 on this year’s list, up from #3,289 just two years ago. The bank more than doubled revenue year-over-year from $11 million in 2018 to more than $24 million in 2019.

Each year Inc. Magazine ranks the fastest growing private companies in America based on percentage revenue growth over the past three years. The Inc. 5000 list represents a unique look at the most successful private companies within the American economy’s most dynamic market segment – independent small and midsized businesses. Companies such as Microsoft, Dell, Yelp, Zillow, and many other well-known brands gained their first national exposure as honorees of the Inc. 5000.

“We were fortunate to more than double our revenue the past year, and to have increased it nearly four-fold over the past three years” said Erik Beguin, founder and CEO of Austin Capital Bank. “The launch last year of our credit-building product, CreditStrong, certainly fueled much of our growth, but we also experienced growth in all our product lines. We’re excited to keep this momentum going as we cross a half-decade of being included on the Inc. 5000 list.”

About Austin Capital BankAustin Capital Bank is a 5-Star rated, FDIC-insured, independent community bank located in Austin, Texas. Austin Capital Bank is consistently recognized as a top performing financial institution and has been ranked on consecutive INC. 5000 lists since 2016. Austin Capital Bank is unique among community banks in that it defines ‘community’ as a common set of needs and values vs the traditional geographic focus of community banks. Austin Capital Bank offers proprietary branded digital banking services nationwide enabled by its own custom-built banking-as-a-service platform and digital banking products group.

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Austin, TX (Dec. 13, 2019) – Erik Beguin, founder and CEO of Austin Capital Bank, has been named by the Board of Governors of the Federal Reserve System to serve on its national Community Depository Institutions Advisory Council (National CDIAC) for 2020, it was announced today in Washington.

The National CDIAC advises the Board on the economy, lending conditions, and other issues of interest to community depository institutions. Members are selected from representatives of commercial banks, thrift institutions, and credit unions serving on local advisory councils at the 12 Federal Reserve Banks. One member of each of the Reserve Bank councils serves on National CDIAC, which meets twice a year with the Federal Reserve Board in Washington, DC.

“Being selected to serve on the National CDIAC is one of the highest honors a community focused banker can receive, and I am honored to have been selected as one of 12 committee members from the thousands of community banks and credit unions nationwide,” said Beguin. “I take my duty to represent the community banks, credit unions, and communities of the 11^th Federal Reserve District seriously and will do my best to represent and advocate for them at the national level.”

Board of Governors of the Federal Reserve System

The Board of Governors–located in Washington, D.C.–is the governing body of the Federal Reserve System. It is run by seven members, or “governors,” who are nominated by the President of the United States and confirmed in their positions by the U.S. Senate. The Board of Governors guides the operation of the Federal Reserve System to promote the goals and fulfill the responsibilities given to the Federal Reserve by the Federal Reserve Act. All of the members of the Board serve on the FOMC, which is the body within the Federal Reserve that sets monetary policy for the United States of America.

About Austin Capital BankAustin Capital Bank is a 5-Star rated, FDIC-insured, independent community bank located in Austin, Texas. Austin Capital Bank is consistently recognized as a top performing financial institution and has been ranked on consecutive INC. 5000 lists since 2016. Austin Capital Bank is unique among community banks in that it defines ‘community’ as a common set of needs and values vs the traditional geographic focus of community banks. Austin Capital Bank offers proprietary branded digital banking services nationwide enabled by its own custom-built banking-as-a-service platform and digital banking products group.

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Austin, TX (Oct. 3, 2019) – For the second consecutive year, the director of the Consumer Financial Protection Bureau has appointed Erik Beguin, Austin Capital Bank founder and CEO, to serve as one of eight committee members to its Community Bank Advisory Council (CBAC).

Beguin and other committee members will advise the CFPB leadership on a broad range of consumer financial issues and emerging market trends related to community banks. Last year, Beguin was named to the banking advisory committee by then-acting director Mick Mulvaney. This year’s director, Kathleen L. Kraninger, made the committee announcement today in Washington.

“The Bureau is able to protect consumers in the financial marketplace better when it receives input from a wide range of experts and stakeholders,” said CFPB Director Kraninger. “With the enhancements we made earlier this year to the structure of the advisory committee program, I am confident that these groups will be able to hit the ground running in their efforts to provide meaningful feedback on Bureau policy and regulations. I look forward to working with them.”

“It is truly an honor to have once again been selected as a member of the CFPB’s advisory committee so that community banks across the country will have their voices heard. I look forward to continuing to provide essential insights on the effectiveness of rules and regulations put in place by the bureau. Working with my committee colleagues on this important work is a tremendous and valuable opportunity,” said Beguin.

About the Consumer Financial Protection Bureau (CFPB)

The Consumer Financial Protection Bureau (CFPB) is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit www.consumerfinance.gov.

About Austin Capital Bank

Austin Capital Bank is a 5-Star rated, FDIC-insured, independent community bank located in Austin, Texas. Austin Capital Bank is consistently recognized as a top performing financial institution and has been ranked on consecutive INC. 5000 lists since 2016. Austin Capital Bank is unique among community banks in that it defines ‘community’ as a common set of needs and values vs the traditional geographic focus of community banks. Austin Capital Bank offers proprietary branded digital banking services nationwide enabled by its own custom-built banking-as-a-service platform and digital banking products group.

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