Indian fintech company CRED has launched a new feature that will assist users in managing and gaining deeper insights into their cash flow. The company wants to increase consumer engagement by offering solutions for personal finance. The new feature from the Bengaluru-based business, which is best known for its consumer loan and credit card bill payment services, is called CRED Money.
Through the consolidation of financial data from all of their bank accounts, customers of CRED Money can monitor both their bank transactions and regular payments (such as rent, staff wages, and SIP investments) on a single screen. In addition, users can receive reminders and search for transactions by categories or merchants.
According to the company, the functionality uses the Reserve Bank of India’s account aggregator structure, a financial data-sharing system designed to improve customer control and transparency over personal financial information. Through a standardized, encrypted route, this system enables customers to provide short-term, purpose-specific access to their financial data across numerous institutions. The new function won’t be monetized, according to the startup.
According to the company, the feature uses data science algorithms to examine the large number of transactions that individuals make across numerous accounts. By distilling this data into succinct, useful insights, the platform hopes to assist users in recognizing trends in their spending, spots for possible investments, and areas in which they may optimize their finances.
According to CRED, the average client performs over 200 transactions each month, which exacerbates the problem of having their assets dispersed across various platforms for roughly 70% of India’s rich population. In addition to possibly affecting credit scores, this administrative burden can result in less-than-ideal decision-making.
In a statement, CRED founder Kunal Shah stated, “More money, more problems.” “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,” he continued.
CRED has positioned itself as a platform for wealthy and creditworthy customers. However, this group is not immune to poor money management, just like any other. Customers frequently overlook checking their bank statements, ignore alerts from banks, and pay late fees.
The business is making several fresh initiatives, the most recent being the phased launch of CRED Money on Thursday. It has been gradually expanding its holdings; most recently, it bought the mutual fund and stock investing platform Kuvera. According to CRED, a thorough internal testing process is part of their product development process, and new features go through months of employee testing before being released to customers. According to CRED management, the strategy guarantees that only features that exhibit evident value are available to the users.