US Credit and loan company Credit Sesame has launched a new free digital bank account that helps customers keep cash and credit in one place.
The California-based firm said the new service, called Sesame Cash, offers convenient features that can be found in challenger bank accounts, such as early payday options, low fees, notifications in real-time, and free access to a large ATM network.
Credit Sesame, founded eight years ago, has 15 million registered users. It competes against such rivals as Credit Karma and Bankrate.
The app, launched earlier this week, will analyze a consumer’s cash and repayment ability against their credit scores and recommend lower-cost credit cards and loans. It will also prequalify customers for approval.
How will the new service help users?
Founder chief executive Adrian Nazari (pictured) said: “Making smarter decisions frees up more cash and improves credit. It’s a one-two punch to improve overall financial health.”
He added: “We are giving consumers the best of challenger banks. Challenger banks have taken basic banking that traditional banks do and made it free and accessible. But this just helps customers manage their money without paying fees. We are offering all of that, but our credit-centric banking helps their cash work for their credit.”
Unlike many other digital banks, Sesame Cash accounts do not pay interest. However, its customers can earn rewards by improving their credit scores. Users are incentivized with $5 if their VantageScore credit scores increase by 10 points per month, or a much greater reward of $100 if the score surges by 100 points per month.
The company also plans to introduce a smart bill pay service in months to come, in order to help users manage cash and improve their credit, and score lower interest rates on credit balances.