Zed, a credit-led neobank, recently introduced the Philippines’ first credit card without foreign transaction fees, interest charges, or annual fees. This marks a significant step in transforming the local credit landscape.
Along with this launch, Zed opened an early access programme via a waitlist, which has attracted over 20,000 sign-ups within two weeks. This initiative, led by Stanford engineers and Y Combinator alumni Danielle Cojuangco Abraham and Steve Abraham, is designed to make credit products more accessible to Filipinos, particularly Generation Z.
A recent TransUnion Philippines study highlights the urgency of this innovation. While 94 per cent of Gen Z respondents acknowledged the importance of credit for achieving financial goals, only 35 per cent reported having adequate access to such products. Zed seeks to close this gap by offering a next-generation credit card specifically tailored for young, high-income individuals with limited credit histories, addressing a key financial need within Southeast Asia.
“Almost 30,000 people have signed up organically for our waitlist since we announced it … We have not spent money on marketing or user acquisition to date. This is a testament to how hungry this market is for a financial services company obsessed with the customer experience,” co-founder Danielle Cojuangco Abraham told e27 in a past interview.
“We see a significant opportunity in credit cards and will be focused on our single product for the foreseeable future. But obviously, our approach of being obsessed with the customer experience and leveraging technology for young, prime equivalent customers can be extended to other products in financial services.”
Also Read: Will digital banks take off in the Philippines?
Digital banking in the Philippines
The digital banking landscape in the Philippines presents significant potential, driven by the country’s young, tech-savvy population and the government’s push for financial inclusion.
With over 70 million active internet users, digital banks have a vast, underbanked market to tap into, especially in rural areas where traditional banking infrastructure is lacking. The rise of fintech has already demonstrated the demand for convenient and accessible financial services in the country.
Key to the success of digital banks in the Philippines is their ability to bridge the gap between the unbanked and formal financial systems. By leveraging technology, they can offer lower fees, faster transactions, and a more user-friendly experience than traditional banks.
This shift could lead to greater financial inclusion, empowering individuals and SMEs to access credit, savings, and investment products previously out of reach. Furthermore, digital banks can harness data analytics and AI to provide personalised services, enhancing customer satisfaction and loyalty.
As the Bangko Sentral ng Pilipinas (BSP) continues to promote the growth of digital financial services, more players are entering the market, fostering competition and innovation. This creates an exciting prospect for the future of banking in the country, with digital banks positioned to lead the way in modernising financial services.
Also Read: UNOAsia secures US$32.1M to provide digital banking services in Philippines
So, how exactly does Zed plan to seize these opportunities? How do they plan to create a long-term impact in the Philippines?
To find the answer, join us at Echelon Philippines 2024 for an exclusive fireside chat on Leveraging Silicon Valley networks: Zed’s path to growth and the long-term impact on the Philippine ecosystem.
Do not miss this rare opportunity to hear from Danielle Cojuangco Abraham and Steve Abraham, Co-Founders of Zed, as they share their journey of scaling a startup through the power of Silicon Valley connections. Moderated by Thaddeus Koh, Co-Founder of e27, this session will offer invaluable insights for founders, investors, and tech enthusiasts on how global networks can accelerate growth and shape the future of the Philippine startup ecosystem.
Reserve your seat now and join the conversation shaping the future of tech in the Philippines! See you at SMX Convention Center Manila on September 26-27, 2024.
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Image Credit: Zed
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