For credit card users, Cred is a familiar name. Now, the brand will also occupy mind space among those seeking credit/loans.
The fintech firm has come up with ‘Cash by Cred’ app to announce its foray into consumer credit ecosystem. The launch reflects the brand’s aspiration to transform from a payments and rewards platform into a full-scale financial services player.
‘Cash by Cred’ offers users instant, pre-approved credit based on their eligibility. Users meeting the criteria will be able to access funds through completely-digital process.
However, the app comes with a smart feature. While personal loans available through traditional channels like banks are disbursed in lumpsum, credit available through the new Cred app will be disbursed according to the needs of the users. It will be like a revolving credit line wherein funds are disbursed in a staggered manner according to the needs of the borrower. Repayment of loans also comes with inherent flexibility.
With Cred launching the Cash app as a standalone platform, it signals the brand’s seriousness and long-term vision of turning lending into a business vertical.
All of Cred’s existing userbase will be able to use the ‘Cash by Cred’ app. This presents the brand with a competitive advantage to get verified customers from the word go who have strong credit profiles and credit scores.
This userbase also translates into lower risk customers who are the backbone for the success of any lender.