NCFAs innovation and funding ecosystem

Fintech Card Space is Growing: Brim Financial, Float, Caary Capital, Jeeves, Neo Financial

Global News | | Oct 24, 2021

fintech credit card offerings grow - Fintech Card Space is Growing:  Brim Financial, Float, Caary Capital, Jeeves, Neo FinancialIf 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.

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.

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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.

Jeeves directly monitors a client’s bank account and uses machine learning to assess risk, which Thazhmon said allows them to offer the higher credit limit and no personal guarantee.

The new competition for the big banks comes as the market is already feeling pressure. Credit card debt fell by $16.6 billion in the first year of the pandemic as people paid down debt, especially those with low credit, who generally pay higher interest. Banks are also seeing more competition from buy-now pay-later models, which some companies like Brim have integrated into their products.

But while the new entrants may have innovative offers, they still have a tough road ahead to break into the market, said Abhishek Sinha, who leads EY Canada’s banking technology consulting practice.

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“It’s not that easy breaking into the credit card space because you’ve got a very mature, established market and it seems the Canadian consumer … we are a bit more risk averse, we are a bit more OK with status quo than our cousins down south.  I don’t think it’s a question of fintechs picking up on a niche that’s underserved, I think it’s more fintechs picking up on niche where they think they can differentiate.”

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NCFA Jan 2018 resize - Fintech Card Space is Growing:  Brim Financial, Float, Caary Capital, Jeeves, Neo Financial The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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