The bank aims to help customers close to the premium to build up credit.
Image source: Andy Mielczarek / Chetwood Financial.
A rapidly accelerating fintech sector is the recent rise of challenger credit cards, with names like Zopa, Tymit and Jaja working hard to bring new proposals to a market lacking innovation.
Enter Chetwood Financial, which is today launching its own challenger credit card called Wave, aimed at helping near-premium consumers underserved by traditional credit card giants.
Wave includes everything you would expect from a credit card in 2022, including an app with biometric login, support for Apple and Google Pay, card freezes, refund alerts, and the ability to change payments from your smartphone, etc.
Chetwood Founder and CEO Andy Mielczarek said AltFi that the “USP” is that Wave brings these features to consumers with low credit scores.
Mielczarek called Wave “a way to get people to build good credit habits.”
To accomplish this, the app also has several unique features, including a refund calculator to help customers understand how refunds affect their account interest, and a 3-day grace period for late payments.
“In our research, we found that Preferred Customers had a much better experience with their credit cards,” said Julia McColl, Chief Commercial Officer of Chetwood. AltFi, highlighting both the cashback and rewards you could get with AmEx or Barclaycard, as well as digital apps and customer service.
“I felt there were a lot of opportunities because what our customers are getting today is way below what the rest of the market seemed to be able to access. “
Clearly, one of the biggest lending trends in recent years has been the surge in buy now, pay later, which Mielczarek describes as both a competitor and an opportunity.
“The buy now, pay later journey is what we compete against,” Mielczarek said, noting the ease with which providers like Klarna are integrated with online checkouts.
“The danger is in the management of your finances, especially if you have several [buy now, pay later products] happening at once. Wave is where you come to after buying a few now, paying later and wanting to take control of your finances.
More generally, the CEO says he is ‘bullish’ on credit demand and the direction of the macroeconomics, which matches the latest Bank of England figures which showed a sharp increase in card use. credit as consumers become more confident in the economy. and increase their borrowing.
“A revolving credit product that you can tap in and out of to overcome any difficulties that may arise in the next year, I think now is the right time for that.”
Wave is teamed up with three other Chetwood Financial products, a fixed-term savings account called SmartSave, an online consumer loan called BetterBorrow, and a dynamic consumer loan that adjusts its rate based on the credit score of the l borrower called LiveLend Reward Loan.
Chetwood obtained its full banking license from the Bank of England in 2019 and has focused on creating financial products for consumers underserved by the general public.