Fintech unicorn introduces unified financial management platform for affluent users, aiming to simplify complex financial landscapes
Introduction:
Cred, the Bengaluru-based fintech company led by Kunal Shah, has announced the launch of Cred Money, a new feature designed to help users manage their finances more effectively. Set to roll out gradually to members starting July 25, 2024, Cred Money offers a unified view of balances and transactions across various bank accounts, addressing the challenge of fragmented finances faced by many of India’s affluent population.
Key Features of Cred Money
1. Unified Financial View: Cred Money allows users to see balances and transactions from multiple bank accounts, wallets, and UPI IDs in one place. This consolidation aims to simplify financial decision-making for users.
2. Streamlined Payments: The platform assists users in managing recurring payments such as Systematic Investment Plans (SIPs), Equated Monthly Installments (EMIs), and insurance premiums. Cred Money sends reminders and updates for these payments and allows users to make them through Cred UPI.
3. Spending Analysis: Users can analyze their spending patterns and search transactions by merchant or category. This feature helps users understand their financial behavior and make adjustments, such as modifying spending habits or increasing investments.
4. Personal Finance Management: Cred Money utilizes the Account Aggregator (AA) framework, which enables secure sharing of bank account information. This allows Cred to present financial information in an organized format without requiring manual input from users.
Addressing the Needs of Affluent Users:
According to Cred, nearly 70% of India’s affluent population struggles with having their finances fragmented across multiple platforms. This issue is compounded by the fact that the average Cred user makes about 200 transactions per month across various platforms, including UPI, net banking, subscriptions, and investment apps.
Kunal Shah, founder of Cred, highlighted the complexities affluent individuals face in managing finances, stating, “For the affluent, managing finances often means more complexities leading to anxiety. We have built a product that improves every affluent person’s relationship with money and makes them less anxious about it through a trusted, insightful experience.”
Technology and Security:
Cred Money is built on the Account Aggregator (AA) framework, which is part of India’s digital public infrastructure. This framework gives users control over their data and enables secure sharing of bank account information. Cred acts as a Financial Information User (FIU) under the AA framework, receiving digitally signed data from Financial Information Providers (FIPs) with the help of Account Aggregators.
Importantly, users can access Cred Money’s services without sharing their bank account login credentials or statements, addressing potential security concerns.
Competitive Landscape:
While Cred’s offering is innovative, it’s worth noting that other players in the Indian financial sector have similar offerings. ICICI Bank, Axis Bank, and Fi Money have apps that provide a unified platform for multiple bank accounts and financial transactions. Many fintech payment apps also offer users a unified view when they pay utility bills, insurance premiums, or subscriptions through the platform.
Data Analysis and Insights:
Cred Money employs data science algorithms to analyze the high volume of transactions conducted by its users across multiple accounts. The platform aims to turn this information into brief, actionable insights, potentially helping users identify spending patterns, investment opportunities, and areas for financial optimization.
Rollout and Future Plans:
Cred Money will be gradually rolled out to members starting July 25, 2024. The company has stated that it won’t be monetizing this new feature immediately, suggesting a focus on user adoption and engagement in the initial stages.
Cred’s product development process involves extensive internal testing, with new features undergoing months of employee trials before customer release. This approach ensures that only features demonstrating clear value reach its wider user base.
Conclusion
The launch of Cred Money represents a significant step for Cred in expanding its service offerings to its affluent user base. By providing a unified platform for financial management and spending analysis, Cred aims to address the complexities of personal finance for credit-worthy individuals in India. As the product rolls out, it will be interesting to see how users engage with the new features and how it impacts their financial management practices.
