Steve Michaels: Yes. Thanks, Anthony. Yes. Build is a — it’s a credit builder loan. So it’s a combination of a credit builder loan and savings accumulation vehicle, and we were proud to be partnering with WebBank to offer that. And what we saw there is our — we serve a lot of our customers quite frequently, and many of them have said that they’re looking for ways to improve their credit score or profile, however you want to characterize that. And build is a credit builder loan is not a new product. It’s a tried and true way to do that or it can do that if it’s done properly. And so we’re excited to add it to the PROG ecosystem suite of products, and it helps to further our mission of improving the lives of our customers through financial empowerment.
There’s lots of opportunities for us to acquire new customers into the ecosystem using build. We — as you can imagine, with our approval rates, we declined a number of customers every year. And we believe there’s — to the extent that we could offer them to build product and have them grow back into a lease approval and then effectively maybe over time or hopefully, over time, grow into a [indiscernible] or a more near-prime product. And so there’s — we’ve got a lot of plans for — well, build is launched, just to be clear, it’s not in all states yet, but we expect to be in all states by the end of this year. We have active customers. We have active loans out there. We’re going to be launching a secured card that would allow the customers to be able to access the accumulated savings.
And we will be doing across marketing, promotional activity between the products to help our customers access build, but also have built helped to grow the leasing business.
Anthony Chukumba: Got it. And just a follow-up. So how is that being market — is that being market under progressive or under WebBank?
Steve Michaels: It’s being marketed under Bill. Bill is the product’s name. Gitbuild.com, and it is being marketed through to the Progressive database, but also in other forms.
Anthony Chukumba: Thank you.
Operator: [Operator Instructions] And our next question comes from the line of Bobby Griffin from Raymond James.
Bobby Griffin: I guess my first question is, Steve on, can you guys just provide any type of context or numbers to kind of maybe help us understand the number of customers that are hanging on the leases longer than maybe historical standards. Because I’m just asking in the sense that as we roll into next year, this behavior could be relatively unique. And I’m trying to get a gauge on the size of that or any type of estimate just to help us think about it.
Brian Garner: Yes. I mean, Bob, we haven’t disclosed the revenue component of the 90-day buyout or the number of customers. I guess what I would say is it’s the primary driver of the gross margin improvement that you have seen year-to-date. That along — I mean there’s that component and then you’ve got the strong customer paint performance overall that are influencing gross margins. And so I think our expectations around this lower 90-day take rate is that it will subside over the course of time. And as I mentioned in my prepared remarks, the variance year-over-year versus pre-pandemic is expected to kind of narrow as we move throughout the year. And so as we edge into next year, obviously, we’ll take a look at what the customer behavior is.
But we have not made public that revenue tranche that is coming from Magna. So I think the way to think about it is normalized gross margins that we experienced pre-pandemic. — are really probably what we would expect longer term and not necessarily counting on this being a permanent dynamic in the model.
