Ponce Bank announces that it is teaming up with Grain


NEW YORK, Jun 3, 2020 (GLOBE NEWSWIRE) – Ponce Bank, the wholly owned subsidiary of PDL Community Bancorp, (NASDAQ: PDLB) is partnering with Grain Technology Inc. (“Grain”) to provide these revolving credit lines with little to no credit or whose credit has been damaged by converting debit cards to “Crebit” cards. The Grain app, Powered by Ponce ™, also aims to teach financial literacy and uses artificial intelligence (“AI”) tools to automatically build credit history to align businesses’ dual mission to expand credit and education to the underserved while tackling economic inequality in the US

Grain was founded in 2017 to provide credit to communities that either avoided it or to whom it was not available. Between Millennials and Gen-Zers, who are debt-averse due to mountains of student debt, and with 4 out of 10 people in this country currently unable to cover an emergency spending of $ 400, lies a huge clientele in desperate need of credit management skills and financial literacy to strengthen their financial future security. Grain identified an unused key to unlock that brighter financial future that is already tied to most customers’ primary checking accounts in the form of their traditional debit card.

Grain has partnered with Ponce Bank to develop a nontraditional underwriting methodology based on cash flow analysis processed by Grain’s AI engine that will enable Ponce Bank to securely provide a line of credit to individuals Based on actual income and spending patterns observed in real life – time on their primary bank account. Grain’s algorithms automatically monitor and manage the loans, make payments automatically, and anticipate impending defaults so they can draw on their line of credit. A customer’s available credit line can be adjusted based on real-time cash flow analysis filtered through underwriting algorithms developed by the companies.

This automated credit management generates a credit history that is reported to the offices, which strengthens the consumer’s creditworthiness and opens the door to traditional credit transactions in the future. Perhaps more importantly, the app is constantly communicating with the customer about their cash flow and spending, providing awareness and suggestions, and allowing them to plan more proactively, develop healthy spending habits, and enable them to manage their credit and finances more effectively than theirs Access to credit.

Ponce Bank is a Community Development Financial Institution (CDFI) and a Minority Development Institution (MDI), two designations that have recognized the bank’s role as an investor in underserved communities for over 60 years. This partnership was driven by shared values ​​between Ponce Bank and Grain, a privately held fintech company committed to providing financial security for the underserved and reducing inequalities in financial health.

Via PDL Community Bancorp

PDL Community Bancorp is the financial holding company of Ponce Bank. Ponce Bank is a Minority Depository Institution, a Community Development Financial Institution, and a Certified Small Business Administration Lender. The main business of the bank is to receive deposits from the general public and, to a lesser extent, alternative sources of funding, and to invest these deposits along with funds from operations and borrowing in mortgage loans consisting of 1-4 family residences (investor and condominiums), apartment buildings , Non-residential real estate and construction and land and, to a lesser extent, commercial and consumer loans. The bank also invests in securities consisting of US government and federal agency securities and securities issued by state sponsored or state-owned companies, as well as mortgage-backed securities, corporate bonds and notes, and stocks of the Federal Home Loan Bank.

Forward-Looking Statements

Certain statements contained herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be subject to the safe harbor provisions of the Private Securities Litigation Reform Act of. 1995. Such statements can be covered by words such as “believes”, “will”, “would”, “expected”, “project”, “can”, “could”, “developments”, “strategic”, “start”, “Opportunities”, “anticipate”, “estimate”, “intend”, “plan”, “goals” and similar expressions. These statements are based on management’s current beliefs and expectations and are subject to significant risks and uncertainties. Actual results could differ materially from the forward-looking statements due to numerous factors. Factors that could cause such differences include, but are not limited to, adverse conditions in the capital and debt markets and the effects of those conditions on the Company’s business; Changes in interest rates; Competitive pressures from other financial institutions; the impact of general economic conditions at the national level or in the local markets in which the Company operates, including changes that adversely affect the ability of borrowers to service and repay the Company’s loans; the expected impact of the novel coronavirus pandemic COVID-19 and the company’s efforts to contain it; Changes in the value of securities in the Company’s investment portfolio; Changes in loan default and write-off rates; Fluctuations in property values; the adequacy of the credit risk reserves; Decline in deposits, which requires increased borrowing to finance loans and investments; operational risks, including cybersecurity, fraud and natural disasters; Changes in government regulation; Changes in accounting standards and practices; the risk that goodwill and intangible assets contained in the Company’s financial statements will be impaired; Credit demand in the company’s market area; the company’s ability to attract and hold deposits; Risks associated with completing acquisitions, divestitures and restructurings; the risk that the company will not be successful in executing its business strategy; Changes in the assumptions used in such forward-looking statements and risk factors disclosed in the Annual Report on Form 10-K and in the Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”) , which are available on the SEC’s website, www.sec.gov. Should one or more of these risks materialize, or should underlying beliefs or assumptions prove incorrect, the actual results of PDL Community Bancorp could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this publication. The company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events, or other changes, except as required by law.

Frank Perez
[email protected]

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