Adverse action notices in subprime auto financing are common.

An acquisition that closed on the last day of July and announced publicly on Monday is designed to make sure that’s not the end of the road for all parties involved.

MeridianLink, a provider of modern software platforms for financial institutions and consumer reporting agencies, acquired Credit Mountain, a financial wellness platform that can help community financial institutions transform loan declines into opportunities through personalized credit education, digital coaching, and actionable financial improvement plans.

Financial terms were not disclosed, according to a news release.

As the financial services landscape evolves, MeridianLink said credit unions and community banks are looking beyond faster lending decisions to deepen member and consumer relationships.

“They are seeking new ways to advance their mission of improving financial well-being, expanding access to credit, and helping more people achieve their financial goals,” MeridianLink said in a news release.

With Credit Mountain, MeridianLink will now offer MeridianLink Pathway, which will help community financial institutions provide declined borrowers with a personalized and compliant path to work towards loan approval.

MeridianLink Coach, which uses artificial intelligence-powered guidance to help consumers build or improve their credit profile and eligibility for the products they need, will be made available later this year.

“MeridianLink has long been a market leader in helping community financial institutions automate and orchestrate account opening and loan origination,”, of MeridianLink chief executive officer Larry Katz said in the news release.

“But our customers’ mission extends well beyond originating loans,” Katz continued. “Credit unions and community banks exist to help people achieve financial stability, build stronger futures, and strengthen the communities they serve. They are looking for new ways to deepen relationships, expand access to credit, and continue supporting members — even when the answer today is ‘not yet.’

“Through MeridianLink Pathway and the future launch of MeridianLink Coach, we’re helping community financial institutions transform the loan decline experience,” Katz went on to say. “Pathway gives borrowers a personalized, compliant path toward future approval, while MeridianLink Coach delivers AI-powered guidance to help consumers strengthen their financial health over time. Together, these solutions help financial institutions create more paths to yes, improve financial outcomes, and build trusted relationships that extend far beyond a single lending decision. To us, that is the true spirit of lending made human.”

When a borrower is declined, MeridianLink Pathway can automatically deliver a personalized adverse action experience that’s designed to help applicants understand why the decisions were made and what steps they can take next to work towards achieving their financial goals.

Rather than relying solely on traditional mailed notices, Pathway can enable compliant digital communications that can provide consumers with supplemental information, actionable guidance, and ongoing engagement opportunities.

The solution can help financial institutions remain connected with consumers throughout their financial journey while meeting regulatory requirements.

Other key benefits include:

—Turn declines into future funded loans with a personalized plan for financial wellness and path to yes, keeping borrowers engaged instead of losing them to competitors

—Providing a differentiated borrower experience that signals support, not rejection

—Transforming adverse action compliance into a relationship-building opportunity

—Reducing the cost of reacquiring borrowers who might otherwise seek financing elsewhere

—Automating and digitizing traditionally manual and expensive adverse action processes

—Unlike traditional decline workflows that end after the adverse action notice is sent, MeridianLink Pathway can maintain an ongoing relationship with borrowers and provides a clear path towards approval.

Together, MeridianLink Pathway and MeridianLink Coach will create a connected experience that helps borrowers understand where they stand today and what they can do next to return as stronger applicants in the future.

“Community financial institutions succeed when they help consumers achieve their financial goals,” Credit Mountain Founder Nathan Pinto said in the news release. “This acquisition strengthens our ability to help more lenders serve more borrowers, build deeper relationships, and offer innovative lending experiences where every borrower has a clear path forward. We’re thrilled to be a part of MeridianLink and look forward to continued innovation together.”