CASE STUDY: FINTECH / MACHINE LEARNING
Deserve
Turning machine learning tech into financial independence for Generation Z.
The Story
How VSC and SelfScore Designed the Deserve Credit Card
SelfScore was a next-generation fintech company that uses machine learning and alternative data instead of relying on FICO scores to determine credit-worthiness.
We engaged with SelfScore when it was solely offering credit services to international students in the US lacking a social security number, which is a requisite for most traditional credit cards.
The company aimed to build a brand for all students that didn’t have traditional FICO scores due to lack of credit and financial history.
Strategy and Tactics
We recommended building a more consumer-friendly brand than its existing name SelfScore, which felt functional and not aspirational in nature. We brought in branding partners and participated in the process around a rebrand to Deserve because students deserve better.
Rather than targeting Millennials, which is a crowded space in the credit card industry, we positioned Deserve to own the narrative on building credit for Generation Z.
We highlighted how Deserve ditched the antiquated FICO scoring model and leveraged a partnership between Deserve and Amazon Prime Student in which cardholders are reimbursed for a year of subscription fees and receive additional rewards like free music and video.
The Results
We successfully positioned Deserve as the first credit card designed specifically for Gen Z. Deserve earned the highest share of voice in 2017 at 34% when compared to competing student credit cards like Discover It for Students, Capital One Journey Student Rewards, Bank of America, and others. Deserve was selected as a Fast Company World Changing Ideas 2018 Finalist and was on TIME Money's Best Credit Cards of 2018-2019 list.
Our efforts resulted in a 200% increase in credit card applications from young adults and college students, and Deserve recently raised a $50 million round to fuel overall company growth.
34%
Share of Voice
200%
Increase in Credit Card Applications
$50M
Fundraise
TechCrunch
Now [Deserve has] created a credit card that it hopes will appeal to Generation Z, or college-aged teens… 'Our mission is to provide access to fair credit to deserving but underserved populations,' CEO and co-founder Kalpesh Kapadia told TechCrunch… 'Most of these kids do not have credit history. They cannot get credit cards without having credit scores.' He believes that better indicators of creditworthiness are 'reliability, discipline, education, employment.'
-Katie Roof
NerdWallet
If you lack a credit history, getting a credit card or loan can be next to impossible. But one credit card issuer is aiming to change that. [Deserve] launched new credit cards for students and employed individuals who lack a credit history or are looking to build or expand one.
-Melissa Lambarena
Banking Innovation
One factor that distinguishes Deserve Pro from other credit cards catering to the underbanked, like for example Petal, is its rewards features. According to Kapadia, these rewards are picked specifically to appeal to Deserve Pro's target audience of 18-29 years of age.