Credit Sesame launches new digital bank account ‘Sesame Cash’
Credit Sesame, the California-founded credit and loan finder, has announced it’s launching a new digital banking account called ‘Sesame Cash’, American Banker reports.
The move to include a banking offering will further help the firm understand the habits of its 15 million customers “credit wellness”.
With insights into its users’ banking habits, Credit Sesame can use its already-accumulated credit score data to help promote more holistic healthy credit behaviours and good cash management.
The introduction of a banking app will also help customers stay engaged with the platform even after they have achieved their credit goals.
CEO Adrian Nazari says 84% of the company’s customers “live paycheck to paycheck” and rely on immediate cash flows.
“Credit wellness goes a long way towards financial wellness,” Nazari tells American Banker. “Making smarter decisions frees up more cash and improves credit. It’s a one-two punch to improve overall financial health.”
Launched in the Credit Sesame app on Tuesday for existing customers, Sesame Cash will include a Mastercard-powered fee-free debit card account with no minimum balances and early access to paycheck funds.
So far sounding very similar to a challenger bank, Nazari believes the Sesame Cash feature will stand out on account of its extra credit features, such as analysing cash and repayment abilities against credit to recommend lower-cost credit cards and loans.
The banking app also includes $1 million in credit and identity theft protection.
“We are giving consumers the best of challenger banks,” says Nazari. “Challenger banks have taken basic banking that traditional banks do and made it free and accessible. But this just helps customers manage their money without paying fees. We are offering all of that, but our credit-centric banking helps their cash work for their credit.”
In the next few months, Sesame Cash will also be adding a smart bill pay service to help customers allocate spare funds to debt, and an auto-savings tool to round up debit card purchases to the nearest dollar.
The account does not pay interest on balances, but customers do get rewards for improving their credit scores. For example, they get $5 if their VantageScore jumps by 10 points in a month.
This reward will change depending on how much the score jumps up by. Credit Sesame says in 2019 roughly 20,000 users’ credit scores jumped by 100 points in a month, which would now – with a new Sesame Cash account – get them all $100 each.
“With Sesame Cash, we are now bridging that gap and unlocking a whole new set of benefits and capabilities in a new product category,” Nazari says in a statement.
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