Fintech credit card space is growing. Here’s what you should know
Global News
On the personal credit card side, companies like Brim and Neo are trying to lure customers with promises of more seamless, app-based digital experience.
If you haven’t shopped for a credit card in a while, you may see some unfamiliar names in the offerings.
Companies like Brim Financial, Float Inc., Caary Capital Ltd., Jeeves Inc., and Neo Financial are part of a growing crop of tech-enabled lenders that are looking to snag a share of the lucrative credit card market from the big banks.
“We’ve never had more choices,” said Mikael Castaldo, general manager of everyday banking at Ratehub.ca.
On the personal credit card side, companies like Brim and Neo are trying to lure customers with promises of more seamless, app-based digital experience, as well as creative rewards programs that partner with specific brands and perks like no foreign transaction fees.
The startups have to be creative with rewards programs because they lack the scale to offer the big sign-up bonuses of the big banks, said Castaldo.
“They’re just getting started, and it’s actually quite difficult to make that margin equation work sometimes for new credit card providers.”
On corporate cards, companies like Jeeves, Float and Caary are aiming mostly at startups and small to medium businesses, offering fast sign-up, numerous digital cards, higher credit limits and no personal guarantee, as well as easier integration into some accounting and spend management software.
“There’s a lot of room for improvement, given 90 per cent of this is still with local banks,” said Dileep Thazhmon, co-founder and CEO of Jeeves.
