- Wells Fargo launched a new small dollar digital financial solution called Flex Loan this week.
- The new offering provides loans of $250 and $500, with a flat fee of $12 and $20, respectively.
- Available in selected markets now, Flex Loan will be available nationwide by the end of the year.
Certainty, simplicity, and clarity are among the virtues of Wells Fargo’s new small dollar digital financing solution, Flex Loan. The new product is a digital, small dollar loan of either $250 or $500 with a flat fee of $12 or $20, respectively. Available only in select markets now, Flex Loans will be introduced across the U.S. by year’s end. Wells Fargo indicated that Flex Loan is part of the financial services company’s efforts to help customers meet short-term cash needs and avoid potential overdrafts.
“What makes Flex Loan different from other payment options is its certainty of approval for eligible customers, the simplicity of obtaining funds in minutes, and clarity around how much it will cost to pay for things like holiday gifts, travel, or an unexpected home or car repair expense,” Head of Personal Lending and Retail Services for Wells Fargo Abeer Bhatia said.
Eligible customers will see the Flex Loan offer in their Wells Fargo mobile banking apps. Once customers take out a Flex Loan and establish their repayment plan (four equal monthly installments), the funds are available in customers’ Wells Fargo account within seconds. Customers can then use the funds via their Wells Fargo debit cards for payments or purchases. There are no applications, late charges, or interest fees.
Flex Loan joins a trio of options announced by Wells Fargo in January that are designed to help customers better manage short-term cash needs. These options are: Early Pay Day, Extra Day Grace Period, and Clear Access Banking. Early Pay Day gives Wells Fargo customers access to eligible direct deposits up to two days in advance. Extra Day Grace Period adds an extra business day to make deposits to avoid overdraft fees. Clear Access Banking offers customers a checkless banking account with no overdraft fees.
With $1.9 trillion in assets, Wells Fargo & Company provides financial services to one in three U.S. households and more than 10% of U.S. small businesses. Wells Fargo is publicly traded on the New York Stock Exchange under the ticker WFC, and has a market capitalization of $176 billion. Charles W. Scharf has been CEO of the bank since 2019.
