Fintech Slice launches Rs 2,000 credit limit cards; aiming to capture 200 million users
Credit card penetration in India is less than 3%, with approximately 30 million unique customers. | Slice
In a first-of-its-kind initiative, credit card challenger slice today launched credit limit cards starting at Rs 2,000, making it the most popular range of credit limit diverse of all cards to date.
Currently, credit card penetration in India is less than 3%, with approximately 30 million unique customers. With this launch, slice opens the card market to 200 million eligible Indians who are already conducting some form of digital transactions, it said in a press release.
The card is completely free and users will be able to enjoy the same benefits as all other cardholders, regardless of the limit.
This move will also allow people to slowly build their credit score even if they have no credit history. The application process is completely digital on the slice app, where a user can reserve their card in just a few minutes.
Credit cards are traditionally not designed for lower limits due to limitations in risk management capabilities. Rajan Bajaj, Founder and CEO of slice, said, “Over the past few years, we have actively invested in building a robust risk infrastructure by leveraging data science. Without strong risk management capabilities, it is impossible to scale such a business and create such a truly inclusive product. But once the ability is built, no one can take the growth away from you. Currently, with 50% monthly growth, our NPA is still below 2%, a validation of our superior credit underwriting capabilities. »
Credit cards usually start at an average credit limit of Rs 20,000. Eligibility and rewards are based on a user’s credit history and granted limit, due to which this industry ends up not rewarding than “predefined premium customers” to the detriment of those who are not. “However, I do not believe in this approach. The definition of premium users or the top percentage of the population is quite mechanical and static in the industry. We at slice have really invested in finding an alternative to that,” Rajan added.
Each slice member receives up to 2% instant cashback, one-time offers at popular merchants like Myntra, Zomato, and the ability to split their bill into 3 months at no additional cost, the statement said.
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