Credit Karma Addresses Car Loans with Comparison Service
As they keep buying out more industry specialists, the American FinTech Credit Karma, which initially focused on tracking customers’ credit scores, significantly expanded their range of services. In line with this diversification strategy, they officially launched a comparison service for car insurance options.
In the end of 2017, Credit Karma introduced a service enabling their users to store data regarding their vehicle on their platform. The point was then to help them keep this data, track the estimated value of their car, and check manufacturers’ recall details.
Less than a year later, 8 million vehicles are on file, and Credit Karma is taking one step further. Their users can now compare their car insurance policy with other members’ whose profiles and coverage are similar. They may then choose another insurance company more easily and save money. They are also provided with an overview of the criteria likely to impact car insurance prices (traffic violations, credit score, etc.).
By way of keeping this promise, Credit Karma relies on data provided by customers themselves regarding their vehicles, as well as on DMV information, and credit bureaus. Once cross-referenced, this data allows them to estimate insurance quotes without customers having to take extra steps.
Comments – Credit Karma consolidating their position as a financial coach
This announcement highlights another logical market expansion for Credit Karma, in line with their previous launches. After enabling their users to provide information about their cars, it makes sense that they should feature refinancing offers for car loans to help them save money. And since Credit Karma already holds the required data, it also makes sense that these customers should also be able to compare their insurance policy with other members’ policies. As they are well aware of their users' profiles, this FinTech can provide a wide range of financial or budgetary advice. This customer knowledge and ability to qualify user profiles give legitimacy to their market position as regards to financial institutions, for whom they act as business providers.
Credit Karma relies on a consistent and ambitious strategy. They became an actual financial coach for roughly 80 million members who agreed to share data in exchange for financial optimisation promises. This strategy was already prefigured by their buyout of a smart virtual assistant (Penny), in March this year.