How a Bengaluru-based startup is solving credit card woes of GenZ and millennials – slice by slice

Conventional bank cards typically include fastened annual fees. Slice is altering this by providing “a totally zero-fee card with no hidden fees or annual charges.” Consultant picture/Pixabay

Hidden fees, large rates of interest and heavy penalties are among the woes related to conventional bank cards. Bank card prospects are subjected to ambiguities. A lot in order that a lot of them have began to consider bank cards as a burden. For instance, the minimal month-to-month cost possibility, which places many shoppers in a debt entice that they even fail to grasp initially. Whereas many bank card customers fall for the minimal month-to-month cost possibility, it doesn’t scale back the precise due quantity by a lot. Nevertheless, a new-age cost card provided by Slice, a Bengaluru-based startup, is promising to unravel these bank card woes for GenZ and millennials.

Rajan Bajaj, Founder and CEO of Slice says the banking trade in India has at all times seen bank card as a mortgage product fairly than a cost product. Subsequently, banks’ focus is to optimise the charges associated to bank cards and there are portfolio groups to extend their mortgage e-book, leaving the shopper expertise in a nook.

Nevertheless, with regards to ‘slice tremendous card’, Bajaj instructed FE On-line, “We see it as a funds product and we’re fixing it as a shopper expertise drawback with a ‘buyer first’ method in thoughts. With Slice, we’re focusing on everybody who’s eligible for credit score, and we’re a 400 million market the place our credit score restrict begins from Rs 10 thousand and goes as much as Rs 10 lakh.”

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Designed for millennials and Genz, who’re looking for new-age monetary experiences, slice card is difficult the normal bank card ecosystem by providing simplified credit score options to shoppers.

“In contrast to many different bank card firms, our focus was on transparency and easy onboarding course of. Moreover, our app is designed to be extremely interactive, intuitive, and relatable to millennials and Genz – serving to them really perceive and demystify the complexities of conventional banking. By the slice app, one can have full management of their card – observe their bills, and compensation schedule to call a number of,” Bajaj mentioned.

However, why a brand new card in an already crowded bank card market?

Slice began off in 2016 and have gone via numerous pivots in its journey until now. It took the primary steps within the cost house with EMI merchandise and progressively launched a digital slice card in 2018 and a bodily card in 2019.

Bajaj claims that slice card has a “distinctive proposition” and “unique options” that make it stand out from conventional bank cards. Slice is promising a seamless and hassle-free onboarding expertise to customers.

Conventional bank cards typically include fastened annual fees. Slice is altering this by providing “a totally zero-fee card with no hidden fees or annual charges.”

“Our prospects can actually use the product without spending a dime for all times in the event that they comply with a month-to-month compensation plan,” Bajaj mentioned in an interplay with FE On-line.

He additional mentioned that banks generate 50 – 60% of their revenue via some type of hidden cost!

“There’s an unsaid perception within the conventional banking construction that these fees are important for profitability and enterprise sustenance. Whereas, Slice took a totally reverse stance. We imagine in full transparency when coping with our prospects, which has resulted in nice buyer belief and referrals. Greater than 70 per cent of our prospects come from the referrals of our present prospects,” he mentioned.

Longest interest-free instalments on Slice card

Slice just lately launched a 3-month no-cost curiosity supply, permitting customers to slice their card payments over three months without spending a dime. Bajaj mentioned that is the “longest interest-free instalments” supply within the trade with no “hidden or additional fees”. Actually, slice card customers can stand up to 90 days of interest-free instalments.

Slice has additionally launched “slice rewards” which supplies as much as 2 per cent rewards on each card transaction and is immediately redeemable to money.

Usually, whereas providing no-cost EMIs on merchandise, bank card firms don’t point out additional fees like GST. Nevertheless, these additional fees seem within the month-to-month invoice. Is that this completely different for slice playing cards?

“We’ve been working with many manufacturers like Amazon, Flipkart for 2 years on a no-cost EMI provision. With the introduction of those two new options, Slice members could make transactions on 5 million retailers that settle for Visa. They will additionally convert their month-to-month payments into three-month instalments at no additional fees like – hidden fees or GST. After seeing the success with our no-cost EMI merchandise with no hidden or additional fees, we imagine it’s time for the trade to start out viewing credit score as a shopper product with Fb, Google, and Instagram as opponents. Against pushing it as a mortgage product to shoppers,” mentioned Bajaj.

get a Slice card?

People who find themselves over the age of 18 can apply for the slice card. Bajaj mentioned, “Our common buyer age is 23. Most of our prospects immediately are salaried workers or freelancers. We’re going after a big buyer base together with new to credit score prospects as a result of somebody should take the step of offering a buyer with their first card.”

In response to Bajaj, there are 3,50,000 slice card prospects presently with near 1 million on the waitlist. Slice is aiming to succeed in a goal of 1 million prospects by the top of FY22.