Jeff Fawkes is a seasoned investment professional and a crypto analyst. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.
Cloud platform and CaaS banking provider Deserve helps corporations to develop customized cards and special loyalty programs.
Deserve offers a set of modern services, including setting up the credit card via mobile app in minutes, sending money with unique fees, participating in cashback programs, and much more. Currently, the platform is used by more than 100,000 customers. With the help of Machine Learning, it aims to make the service better and attract people from all over the United States.
During the venture funding round, Deserve received $50 million in investments to enhance its services. The money will come from a number of established financial giants, such as Accel, Sallie Mae, Mission Holdings, Aspect Ventures, and notably, Goldman Sachs.
The money will go to the 60 professional developers building the API and cloud services that will meet the demands of young users. The Deserve offers a broad set of services to individual customers and big corporations across the scene. Per Ashwin Gupta, head of development:
“Goldman Sachs is supportive of Deserve’s mission to expand access to credit, and to simplify the ability for organizations to offer their bespoke credit card products. We believe Deserve’s card platform will bring meaningful savings and new opportunities to institutions across a range of verticals.”
Deserve’s Card as a Service (CaaS) approach guarantee that the company will bring up their program in 90 days. This is much less than the usual term of 18-24 months.
Young People in the United States Prefer Avoiding Credit Programs
Their main goal is to attract youth. Because people who were born after 1995 are scared of banks thanks to their relatives and friends. The society is telling them taking credit or using a bank is slavery. Add some libertarian ideas here with a small piece of cryptocurrency ideology, and you get the picture. Also, the youngest people usually the kindest ones, meaning they may have moral obstacles to join the banking world. But when you look up some business guru advice, they always tell that a successful entrepreneur use banks and credit programs to evolve. In the right hands, a credit card can be a potent tool for expanding the business.
However, according to the stats, only 5% of the whole country’s young population is using credit cards. The average scholars avoid banking services to eliminate the possible credit slavery that is so typical in the United States, with all that 18% credit card commissions. These look too expensive compared to 1-3% credit programs given to the EU residents by some European Banks.
However, the reports say that young people in need of money transmitting services always chose credit cards as their first banking product if they have no choice.
What do Customers Deserve to Receive from ‘Deserve’?
Deserve aims to break the general laws. It contains two types of cards that you can offer and customize. These are – Affinity and Branded credit cards. In terms of that packages, companies can order branded cards and serve their audience via multiple channels.
When a company has its brand on the card that it gives the employee a feeling that he or she is a unique member of a private club. If a worker or a volunteer gains some unexpected benefits from the company, it helps to cross-sell multiple products. Also, gamification of interfaces and specially crafted customer rewards are unique experiences.
Although the company is not gaining any profits in its current stage of development, things can change in the future. With the venture capitals flow in, the total sum of investments in the company amounts to $100 million. People at Deserve think that they can change how universities, fintech corporations, manufacturers behave with their workers and customers. If a company seeks to expand its customer base, a credit card with low fees and extra functions can be a solution.