Ben Psillas, founder of the Allpoint ATM network and later, EVP at Cardtronics, has joined Rate Reset, a financial startup company that uses technology to allow borrowers to reset the interest rates on their loans.

Psillas, who took Allpoint from its founding as an ATM network fee-free system to the consumer to the point of its purchase by Cardtronics, told CU Times he took the positon, in part, to return to the type of innovative and disruptive work he did during Allpoint's early years.

“Joining a start-up in the financial technology sector was of great interest to me so when the founders of Rate Reset approached me about being their CEO, I jumped at the opportunity,” said Psillas, who joined the company in January 2014.

“One of the primary reasons I joined the Rate Reset team was that while the products offered by Rate Reset and Allpoint were different, the execution of the business model was very similar, so I knew I could leverage my experience and track record to make an immediate and lasting impact on Rate Reset's success,” he added.

Keith Kelly, co-founder and president of Rate Reset, said the company is excited that Psillas accepted the CEO position.

“As we enter the next phase of growth, the time is right to bring in a seasoned executive with Fintech experience and a proven track record of building successful companies,” Kelly said.

The two companies are similar in that they each have introduced technology that did not completely disrupt existing industry but which have disrupted aspects of them.

While Allpoint did not completely overturn ATM surcharges, it provided credit unions and other financial institutions with a way to remove the surcharge costs from the cardholders. This allowed them to effectively compete in different ATM markets.

Although Rate Reset does not eliminate mortgage loans, Psillas said it eliminates a significant portion of the cost of housing finance.

“The more I learned about Rate Reset, the more surprised I was to learn that it's not just consumers who find refinancing a mortgage loan to be an expensive hassle, the financial institutions do too.” Psillas said.

Allowing consumers who qualify for the program to reset their mortgage rates and refinance their notes means financial institutions don't have to worry as much about losing their borrowers' mortgage business when they want to refinance, he explained.

Moreover, if the consumer runs into trouble, they might more easily remain in their homes, Psillas added.

Psillas said he worked with Rate Reset to change the name when it became clear, among other things, that Mortgage Harmony limited too much of the company's capabilities. The same technology can be used to reset the rates of auto loans and home equity lines of credit, not just mortgage notes.

Currently, 30 credit unions use Rate Reset's technology, including the $18.5 billion Pentagon Federal Credit Union in Alexandria, Va., and the $1.7 billion GTE Financial, in Tampa, Fla., according to the company. Twenty credit unions use the rate setting technology in their housing finance programs, 10 cooperatives use the auto rate reset technology.

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