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Brief Published: 21 Aug 2020

Fintech Start-Up Wants to Break Credit Card Conventions


Fintech start-up Cred.Ai is using artificial intelligence (AI) to help consumers build good credit scores and healthy financial habits. At a time of economic upheaval, especially felt by millennials and Gen Z, there’s a key opportunity for brands to step in with supportive initiatives – as discussed in our Financial Wellness report.

Based in PhiladelphiaCred.Ai is aimed at Gen Zers (born between 1996 and 2009) and millennials (born between 1981 and 1995) with weak credit histories, promising that users who follow the app’s personalised AI-informed rules will never pay late fees or interest, while building credit over time. 

Once a customer receives their free metal credit card, the Cred.Ai app displays an allotted amount of ‘spendable’ money (not their total balance) calculated by an algorithm that factors in regular incoming expenses. 

Cred.Ai’s other innovative features include ‘The Flux Capacitor’, showing upcoming bills to protect against overspending, and ‘Friend or Foe’ which lets users mark businesses as trusted or not, to prevent unauthorised or fraudulent transactions. 

With America’s Consumer Financial Protection Bureau reporting that 26 million US adults currently lack a credit record (CFPB, 2020), Cred.Ai is delving into a largely untapped market of “credit invisible” consumers. Its policy never to sell customers’ personal data also speaks to concerns about data privacy and differentiating itself from conventional banks.

More specifically, Cred.Ai’s younger target audience has been hard hit financially by the pandemic, making mindful spending especially important. In April, 76% of millennials (the highest percentage of any generation) across seven countries said their finances had already been negatively impacted by Covid-19 (TransUnion, 2020). For more insight into millennial financial hardship, see The Brief.

Also see our Three-Minute Trend: Can Technology Make You a Better Person? for more ways tech is being used to prompt better consumer behaviour.