Pioneer Credit, a Perth-based debt manager, is reportedly planning to team up with a regional lender to roll out a new white label credit card by the end of this year.
The move is part of the company’s plans to become a specialist mid-market credit provider.
Pioneer Credit founder and CEO Keith John told Sydney Morning Herald (SMH): "Unlike the traditional debt collection industry that is focused on getting as much money as possible in the immediate term and writing off the rest, we take a financial counselling approach to help people pay their debts off in full over time.
John added that the new Credit-branded credit card will be a "no frills type" product that provides lower credit limits of about $2,000 or $3,000.
So far, John has not disclosed the underwriter on its first white label credit card but is planning to launch a range of white-label personal loans to foray into the residential mortgage business.
Also, he also plans to launch phase two of his business plan by selling new products to his rehabilitated clients, reported SMH.
Evans and Partners, an underwriter of the Pioneer Credit IPO, co-head of research, Lou Capparelli said: "Pioneer Credit’s long-term growth plan to move into selling rehabilitated clients new financial services products is a logical extension of their business model, but it is too early for us to factor this into our forecasts."