Zed, a credit-led neobank, has introduced the first-ever credit card in the Philippines that is free of foreign transaction fees, interest charges, and annual fees. The announcement has launched an early access program through a waitlist, which has attracted over 20,000 sign-ups in just two weeks.
Founded by Danielle Cojuangco Abraham and Steve Abraham, Zed aims to address the issue of credit product accessibility for Filipino Gen Zs. A study by TransUnion Philippines highlighted a notable disparity between the importance of credit among this group and their actual access to credit products. While 94% recognize the significance of credit in achieving financial goals, only 35% reported having adequate access to credit services.
Zed plans to bridge this gap by developing a next-generation credit card tailored for Southeast Asia, specifically targeting young individuals with decent incomes but limited credit histories, addressing a pressing need in the regional financial landscape.
With a team of 10 in San Francisco and Manila, Zed focuses on product, engineering, and design in San Francisco, while the Manila team handles operations, customer success, and marketing.
The startup has secured US$6 million in funding, primarily led by Peter Thiel’s Valar Ventures.
Also Read: UNOAsia secures US$32.1M to provide digital banking services in Philippines
So, what makes Zed stand out from other digital banks in the region, especially in the Philippines? Co-Founder Danielle Cojuangco Abraham shares insights in an email interview with e27.
For the full interview, click here.
What specific problem do you aim to tackle for your customers?
Zed aims to simplify the complexity, lack of transparency, and bureaucracy inherent in financial services, focusing on providing a straightforward, transparent, and customer-centric experience while avoiding unnecessary red tape.
Also Read: BRI Agro CEO Kaspar Situmorang: Why tapping into the ecosystem is key to a digital bank’s success
What is your user acquisition strategy? Is there any insight that you can share about what makes the young professional segment in the Philippines unique?
Zed has seen organic growth with almost 30,000 sign-ups on the waitlist without any marketing expenditure, indicating a strong demand for a customer-centric financial services company in the market.
What other product innovations do you have in the pipeline?
Zed is focused on creating a credit card with smarter underwriting, innovative features, no fees, and a revenue model not reliant on customer debt. The company plans to introduce long-term financing options in the future.
Also Read: Securing tomorrow’s finances: Navigating the rise of digital banks with cybersecurity
What is your major plan for 2024?
Zed’s main focus for 2024 is to continue listening to customer feedback and enhancing the credit card experience for young, urban Filipinos.
—
Image Credit: Zed
The post How Zed aims to set itself apart in the Philippines with its credit-led neobank appeared first on e27.