Is Cred a business or just a long party? If they are a business then how do they make money? What do they stand for - currently it just looks like a hangout place for super privileged bros?
People outside are more concerned about creds business model than people inside. Also if any cred guys are here answer this- Wtf is that edgy 90s tron legacy looking UI. I swear the lead designer needs to be sent back to school and learn color theory and that shapes like circles exit.
How do so many people not know that they are in to the lending business?
You know about Bajaj Finserve, how did they become so big and profitable, it's because they have access to data of the most credit worthy people of India. Now Cred has access to the most premium layer of credit worthy people of India, think people who use amex or DCB, they are the people who take new iphones every year and change cars every 2 years and take holidays on borrowing but definitely pay back on time and Just want to live the life.
Cred caters to them and makes money on processing fees and interest spread. Processing fee of a loan can be 2-3% of the loan amount and interest spread simply means, borrow at 9% from a debt facility and give loans at 18% to a borrower who you are sure that will repay back.
This is the bread and butter for now, but don't rule out the possibility of becoming a bank or wealth management company like Navi. GenZ want things simple and should look sassy and cool and they are also the cream consumer with earning potential, that's the target.
Last note, imagine you get a sexy looking metal credit/debit card with your choice or engraving or design one that you can flaunt or use to snort, I'm sure 50% of the people will join the waitlist in 1 hour of the tweet.
Idk about their business model, and frankly idc, helped me pay cc bills in one place, but what the fuck is with so many design changes? As soon i get used to it, its already changed!! I started using cheq not for the reward(which actually have some value) but atleast they wont change their interface every other week(hopefully).
