Annexure-V- Cover Page for Academic Tasks

Course Code: MKTM677 Course Title: PRODUCT MANAGEMENT FOR DIGITAL

BUSINESSES AND PLATFORMS
Course Instructor: Dr. Amit Kakkar Academic Task No.: 02

Academic Task Title: Assignment 02 Date of submission: 21.12.2022

Student Name: NIKHIL S. KUMAR Section: Q1E31

Student’s Roll No: B41 Student’s Reg. No: 12104252

Evaluation Parameters: As per guidelines

Learning Outcomes: Understanding the CRED Case study.

Declaration:

I declare that this assignment is an individual work. I have not copied it from any other student’s work or from
any other source except where due acknowledgement is made explicitly in the text, nor has any part been written
for me by any other person.

Student’s Signature:

Evaluator’s comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator’s Signature and Date:

Marks Obtained: Max. Marks:

INTRODUCTION
CRED is a financial technology company based in India that offers a credit card bill payment
and rewards platform. The company was founded in 2018 by Kunal Shah, the co-founder of
Indian e-commerce company FreeCharge. CRED's platform allows users to pay their credit
card bills through the app and earn rewards in the form of "CRED coins," which can be
redeemed for discounts and offers from a variety of partners. The company has attracted a
large customer base and has raised significant funding from investors. In 2021, CRED was
valued at over $2 billion.

SUCCESS STORY

CRED is a financial technology company that offers a credit card bill payment and rewards
platform in India. There are several factors that have contributed to the success of CRED:

Innovative business model: CRED has developed an innovative business model that
rewards users for paying their credit card bills on time. This unique approach has helped
CRED differentiate itself from competitors and has likely contributed to its success.
Strong branding and marketing: CRED has a strong brand and has been successful at
marketing itself through social media and other channels. This has helped it gain a loyal
customer base and drive growth.

User-friendly app: CRED has developed a user-friendly app that makes it easy for users to
pay their credit card bills and earn rewards. This has likely contributed to the company's
popularity and success.

Strong partnerships: CRED has formed partnerships with a number of well-known brands,
which has helped it attract and retain users. These partnerships have likely helped CRED
expand its reach and drive growth.

Strong leadership: CRED has a strong leadership team with extensive experience in the
financial technology sector. This has likely helped the company navigate the challenges of
the industry and drive its success.
BUSINESS MODEL OF CRED
CRED is a financial technology company that operates a digital credit card payment and
rewards platform in India. Its business model is based on offering a range of credit cards to
consumers, partnering with banks and financial institutions to issue the cards, and earning
revenue from various sources including transaction fees, interest on unpaid balances, and
rewards program fees.

On the CRED platform, users can apply for and manage their credit cards, make payments,
track their spending, and redeem rewards. CRED has partnerships with a number of banks
and financial institutions, including HDFC Bank, ICICI Bank, and Citibank, and offers a
range of credit cards with different features and benefits.

CRED also operates a rewards program, where users can earn points for making purchases
with their credit cards and redeem those points for a variety of rewards including discounts
on products and services, cashback, and other perks. CRED earns revenue from the fees it
charges for the rewards program, as well as from the transaction fees and interest it charges
on unpaid balances.

Overall, CRED's business model is based on offering a convenient and rewarding platform
for credit card management and payment and earning revenue through a variety of sources
including fees, interest, and rewards program fees.
In comparison to its competitors, CRED's business model is similar to that of other credit
card issuers and payment platforms. Many of CRED's competitors also offer a range of credit
cards, partner with banks and financial institutions to issue the cards, and earn revenue from
transaction fees, interest, and rewards programs. However, CRED differentiates itself from its
competitors by focusing on providing a digital platform for credit card management and
payment, and by offering a rewards program that is targeted at a specific segment of high-
spending consumers.

Some of CRED's main competitors in the Indian market include Paytm, PhonePe, Google
Pay, and Amazon Pay, which are all digital payment platforms that offer a range of financial
services including credit card payment and management. These platforms generally earn
revenue through transaction fees and by offering other financial products and services.

Overall, CRED's business model is similar to that of other credit card issuers and payment
platforms, but it differentiates itself through its focus on providing a digital platform and a
rewards program targeted at high-spending consumers.

FEATURES THAT CAN BE ADDED

There are several features that could potentially help CRED achieve the next level of growth.
Some potential options could include:

 Expanding its network of partners: CRED could consider partnering with additional
banks and financial institutions to offer a wider range of credit card options and increase
its customer base.
 Improving the user experience: CRED could focus on making its platform more user-
friendly and intuitive to encourage more users to adopt and use the platform regularly.
 Enhancing its rewards program: CRED could consider expanding the range of rewards
and perks available to users, or introducing new ways for users to earn rewards, to increase
customer engagement and loyalty.
 Offering additional financial services: CRED could consider expanding its offerings
beyond credit cards to include other financial products and services, such as personal
loans, insurance, or investment options.
 Entering new markets: CRED could consider expanding beyond India and entering new
markets, either through partnerships or by establishing a presence in the local market.
 Leveraging data and technology: CRED could consider using data analytics and
machine learning techniques to better understand customer needs and preferences, and to
optimize its offerings and marketing efforts.

Overall, the key to CRED's growth will likely be a combination of expanding its customer
base, improving its offerings, and leveraging data and technology to optimize its operations
and drive customer engagement.

GRAPHICAL REPRESENTATION

INTERPRETATION

FIGURE 1

The graphs given in the document in which you can see that the value of the company is
Increasing with increase in the transactions done through it. This might be happened because

the company has applied certain strategies which helped company to generate its customers.

As you can see in the below graph that in May, the valuation of the company was 250 INR

crore and the transaction done through it was near by 3 millions. Then due to sudden rise in
the

transactions to 23million through the CRED, the valuation of the company has also increased

to 400 INR crores. There might be several strategies that CRED has applied due to the

transactions done through it raised suddenly:

REWARDS POINT: It might be providing several discounts or more rewards point during

the month of June which led to increased in the transaction rate.

INTEGRATION WITH OTHER APPS: It might be done some tie ups with certain apps
that

could provide discount using CRED on that platform.

OFFERS: The CRED might be providing offers and cashbacks during the specified period

which increased the transaction done through CRED.

Later, you can see that the growth of the transactions done, and its value is uniform in nature.

This indicates that the CRED has adopted several measures to retain its customers after the

sudden rise in the number of transactions through its customers. The CRED certainly has

applied number of strategies so that its customers stay loyal with it and this helps in the
uniform

growth of the company. The strategies could be:

Remarkable Marketing Campaigns: CRED has a purpose behind every move. Each of the

marketing strategies helped CRED earn an advantage in the market.

FIGURE 2:

In this picture, you can see that the Valuation of the CRED is declining as there is decline in

the transactions done through it. So, there is directly proportional relation in both given

variables. The valuation and transactions have been declined in the whole phase from May to

October. As there was the 62 million transactions done through it in the month of May and
the

valuation of the company was 7000 INR crores at that time, but at the end of October month

the valuation of the company was 6000 INR crore and left with nearby 53 million
transactions.

There might be certain things due to which there is decline in the transactions of the
company:

• The company has reduced the number of reward points.

• The company had offered less no. of discounts or cashbacks, which reduced its customers.

• They might be not able to provide services or handle their customers. For example, through

customer support.

One thing has been cleared from the above two figures, that CRED’s valuation is depends
upon

the transactions done through its app by its customers because that’s the thing through which

CRED generate its revenue.

FUTURE RECOMMENDATIONS TO ENHANCE BE COMPETITIVE IN

DIGITAL BUSINESS.

There are several steps that CRED could take to enhance its competitiveness in the digital

business space:

1. Improving UX: An immense piece of the fintech client experience is about how simple it

is for your clients to utilize your foundation and how instinctive your foundation or

application is. The entire thought is to diminish client exertion and make a consistent

encounter that separates at no point. You additionally need to ensure that your application

or stage is streamlined for different screens sies, so your clients don't need to get baffled

since they're utilizing your application on something besides the most recent iPhone.

2. Use man-made intelligence and ML for misrepresentation recognition: Man-made

reasoning and AI can be utilized to break down the ways of managing money of your

clients, distinguish buys or areas that digress from the profile and the examples, and

afterward banner them to be surveyed before the exchanges can be finished, consequently

decreasing the gamble of misrepresentation to a significant degree.

3. Smooth out consistence: Man-made intelligence and ML can likewise distinguish designs

that can assist them with sorting out where monetary anomalies are probably going to

occur. Your FinTech organization can utilize these advancements to play it safe so the
issues don't go crazy and are rather stopped from ever really developing, subsequently

assisting you with staying away from consistence issues and terrible client encounters.

4. Associate with your clients in their language: You really want to cause your clients to

feel open to working with you. Furthermore, interfacing with them is an immense piece

of that. If you don't restrict, you risk estranging an immense lump of your

client base, particularly since under a fourth of the world's web clients grasp English in

any case.

5. Handle client questions and answer immediately: Suppose that one of your clients runs

into an issue at 4:00 in the first part of the day and can’t sort out a method for working

around it. Is it true or not that you will leave them hanging tight for you to answer an email

or for your client assistance specialists to come online at 9:30? The client might just wind

up having a fit of anxiety on the off chance that they're left caught in that.