Zed, a credit-led neobank, has introduced the first credit card in the Philippines without foreign transaction fees, interest charges, or annual fees. This is a significant milestone in revolutionizing the local credit landscape.

Accompanying this launch, Zed has initiated an early access program through a waitlist, which has garnered over 20,000 sign-ups in just two weeks. Founded by Stanford engineers and Y Combinator alumni Danielle Cojuangco Abraham and Steve Abraham, this effort aims to provide easier access to credit products for Filipinos, especially Generation Z.

Recent research by TransUnion Philippines underscores the importance of this innovation. While 94% of Gen Z respondents recognize the significance of credit in achieving financial goals, only 35% have adequate access to such products. Zed aims to bridge this gap with a cutting-edge credit card tailored for young individuals with limited credit histories in Southeast Asia.

“Almost 30,000 people have joined our waitlist organically since its announcement… We haven’t spent any money on marketing or user acquisition thus far. This reflects the strong demand in this market for a financial services company that prioritizes customer experience,” co-founder Danielle Cojuangco Abraham shared in a previous interview with e27.

“We see a substantial opportunity in credit cards and will focus on our single product for the foreseeable future. However, our customer-centric approach and use of technology for young, prime equivalent customers can potentially extend to other financial products.”

Also Read: Will digital banks take off in the Philippines?

Digital banking in the Philippines

The digital banking sector in the Philippines holds great promise, driven by the country’s tech-savvy population and the government’s push for financial inclusion.

With over 70 million active internet users, digital banks have a sizable untapped market, especially in rural areas where traditional banking services are scarce. Fintech’s emergence has already indicated the demand for convenient financial services in the nation.

A key factor for digital banks’ success in the Philippines is their ability to connect the unbanked with formal financial systems. By leveraging technology, they can offer lower fees, quicker transactions, and a more user-friendly experience compared to traditional banks.

This shift could lead to enhanced financial inclusion, enabling individuals and small businesses to access credit, savings, and investment products that were previously inaccessible. Moreover, digital banks can utilize data analytics and AI to deliver personalized services, boosting customer satisfaction and loyalty.

As the Bangko Sentral ng Pilipinas (BSP) continues to promote digital financial services’ expansion, more players are entering the market, fostering competition and innovation. This sets the stage for an exciting evolution in banking in the country, with digital banks poised to lead the modernization of financial services.

Also Read: UNOAsia secures US$32.1M to provide digital banking services in the Philippines

So, how does Zed intend to seize these opportunities? How will they make a lasting impact in the Philippines?

Get the answers by joining us at Echelon Philippines 2024 for an exclusive fireside chat on Leveraging Silicon Valley networks: Zed’s growth path and its long-term impact on the Philippine ecosystem.

Don’t miss this rare chance to hear from Danielle Cojuangco Abraham and Steve Abraham, Co-Founders of Zed, as they discuss their journey of scaling a startup through Silicon Valley connections. Moderated by Thaddeus Koh, Co-Founder of e27, this session will offer invaluable insights for founders, investors, and tech enthusiasts on accelerating growth and shaping the future of the Philippine startup ecosystem through global networks.

Reserve your spot now and be part of the conversation shaping the future of tech in the Philippines! Meet us at SMX Convention Center Manila on September 26-27, 2024.

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Image Credit: Zed

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