Through Garage, Cred is looking to offer users a single dashboard that will allow them to access a round-the-clock concierge service for roadside assistance, help them manage documentation, including their driver’s licence and registration certificate. It will also provide insights on their vehicle spends.
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Garage will also hold maintenance records, performance insights, and track fuel spends to help users tune their vehicle usage on the basis of these insights.
Laying a foundation for insurance distribution
According to at least two people in the know, Cred’s move towards vehicle management is also aimed at providing a strong car insurance distribution platform for its financial partners, as the fintech looks to open newer revenue streams.
Collecting data from users on their vehicles will allow it to provide a more premium data set to insurance partners.
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“As expected from Cred, members will also enjoy rewards, offers, and deals across transactions. Members can also renew motor insurance (through the platform) and get member-exclusive perks,” the company said in a press statement.Today, Cred already acts as a credit distribution platform for its lending partners and hinges its differentiation on high credit score customers.
Taking on Park+
It will also be taking the fight to Peak XV and Matrix-backed Park+, as the fintech looks to provide granular data on parked cars in an easy-to-read dashboard.
Further, Cred has been pushing to ensure stickiness on its platform, diversifying from just offering credit card bill payments, and has launched newer features such as the Unified Payments Interface (UPI) on its platform in recent months. Garage is another effort by the company to boost user stickiness as it looks to offer new financial products to its user base.
Cred did not directly respond to ET’s queries around its car insurance distribution plans.
“While cars are an emotional asset for Indians, ownership is complex, time-consuming, and high-friction, with a number of tasks that need to be addressed regularly, such as paying challans, renewing insurance, and getting the car serviced,” the company said in response to ET’s queries. “There is a significant overlap between unique credit card holders and car owners—both belonging to the top 10% of high-spending individuals with higher disposable income.”
The Garage platform will have DigiLocker integration, which will allow users to access essential documents such as their driver’s licence, registration certificate, and insurance papers.
The platform is also expected to provide reminders to users for essential tasks such as pollution checks, emission tests, and insurance renewals to ensure their vehicle stays in mint condition.
Cred will roll out Garage to its entire user base starting Thursday. The service will be housed on its main app.