CRED is building a community of credit cardholders that have a credit score of greater than 750. It simplifies credit card statements and rewards users for paying their credit card bills on time.
A million-dollar question is how would Kunal Shah go about monetising CRED?
A quick glance at Mr Shah’s social media profile shows he’s doing a ton of polls on savings accounts, investments and constantly asking for user feedback for the kind of features that they would want on CRED. So the next obvious move for CRED seems like Lending.
Kunal Shah has been vocal about it, he’s in the process of figuring things out, he talks about ideas such as Classifieds, Apartment Listings (real estate?!), helping CRED members get visas on a priority basis, it’s hard to gauge the kind of direction that he wants to take. There will certainly be a pivot, in my opinion, there should be a way where members could be able to find and reach out to other members, this way they will be able to leverage resources from each other, I can’t picture a traditional social media platform though. This is where all the data that CRED has been generating will come in handy, this has the potential to create several opportunities. CRED is open to growing inorganically, what is the single most important area to improve for CRED that can be improved with outside help? There seem to be more questions than answers, also international expansion seems to be on the horizon.
Although Kunal Shah says CRED is a “Lifestyle Brand”, in my opinion, CRED is a Fintech company in the making.
The target audience for CRED, the upper crest that has a credit score of 750+ could be offered a variety of financial products and services:
- They could offer loans going forward, lending seems the next logical step.
- A large majority of the users I assume travel maybe more than once a year, CRED is looking to expand internationally — there has to be a way for CRED members to spend their CRED coins in at least these countries.
- A CRED forex card is another financial product that it could offer going forward.
- In the future CRED should ideally have an integration of a wallet(Paytm, Phonepe), probably acquire one of these wallets. A lot of CRED users complain they’re unable to use all their CRED coins. A solution to this would be to be able to convert CRED coins to a small amount so that the brands are not discouraged to come onboard but also solve the user issue. Convert say 1,00,000 CRED coins = Rs. 1000.
- There have been many instances when banks charge Credit cardholders in excess fee(late fee etc.), CRED should look to solve this problem and instead of having users complain to Banks and CRED customer care, a simple mechanism should be put in place wherein CRED directly contacts the Banks on behalf of the customers and in case the problem is genuine, CRED gets to charge a 15% fee.
- One of the options would be the ad revenue model since CRED has access to data about where exactly the users spend their money, all the big brands should ideally want to be on the platform along with the Banks since in a way CRED is encouraging users to spend money.
The future of CRED to me looks like a Wealth Management firm for the top 1–2% of the country — where they’re offered loans, investment opportunities and lastly pay their credit card bills too.