Credit Karma Seeks To Grow Gen Z Customer Base
The fintech was initially known for providing free credit scores to customers. Additionally, it would make its profit by referring its customer base to the financial products of other firms. However, Credit Karma is now targeting Gen Z as a long-term customer base that relies on their own original products.
One of the first products launched by Credit Karma is a high-yield savings account. The account offers a 1.8% interest rate which is larger than the standard 0.9% interest rate offered by other competitors.
Credit Karma has focused on this product in particular because young consumers are not particularly interested in other products such as auto loans. When the company tried to market other products at college campuses, they were unsuccessful.
Instead, savings accounts are lucrative amongst young customers and Credit Karma is using celebrity partnerships to gain attention amongst their target group. They recently partnered with Jameela Jamil, an actress that stars in The Good Place, to host a financial wellness event that also marketed its products.
Some are seeing Credit Karma as a strong IPO candidate for 2020. The company has confirmed that it is profitable.