The pandemic has posed a severe liquidity challenge to many, what with job losses, pay cuts, delayed salaries and business losses. Consequently, many individuals are using credit cards to meet their financial obligations, including rental payments. But not many realise that credit card usage can make or break their credit scores, which in turn can impact their future loan needs.

In comes Wizi, an AI-based credit card management app developed by Chennai-based start-up Acsz Technologies. Wizi doesn’t just help credit card users keep track of their expenses, it also provides an upfront alert on whether a particular transaction will improve or deteriorate their credit score.

“The credit scores which are available today are lag indicators. So, we have created an AI-enabled rule which tells the customer upfront about the impact of any transaction on his credit score,” said Venkatesan Anandaraj, founder and CEO, Wizi App.

Currently, credit scores are maintained by credit bureaus, which depend on information shared by banks. Banks send the credit information to bureaus by 30-45 days of the transaction, upon which bureaus update the credit records of the customers.

“So, your credit card behaviour three months ago is impacting your credit score today,” Anandaraj said.

Link with bureau score

To provide real-time updates, Wizi uses an in-built tool called ‘card score’, which helps card users understand the impact of each transaction on their credit score. The card score, with a range of 0 to 900, is based on multiple variables such as card utilisation, spending and repayment patterns.

“We are also in the process of linking this (card score) with bureau score. Tomorrow, your card score will automatically correlate with your bureau score. Any movement in the card score will immediately reflect in the credit bureau score also,” said Anandraj.

Currently, there are four credit bureaus in the country — Transunion CIBIL, Equifax, Experian and CRIF Highmark. Fintech start-ups are allowed to access data only from Equifax and Experian.

Umbrella app

Not just card scores, Wizi is built as an umbrella app for all credit card related transactions, right from card application to bill payments to offer scouting to card exit. “No other player is operating in the card application and exit space,” Anandaraj said, adding that Wizi already has agreements with HDFC, Kotak and RBL for sourcing new card applications and will soon have Citibank and Standard Chartered on board.

“One year down the lane, you will have all the banks participating on the platform,” he added.

The app, which is currently available on Android, already has a base of 1,000-plus card users, of which 650 are active users. The app will soon be launched on the iOS platform.

The company, backed by angel investors, counts lead referrals (for new cards), mobile technology as a service for banks and digital card origination system as three major sources of revenue.

“Our vision is to digitise the credit card disbursal process to ensure the customer has a seamless and swift experience across cards,” Anandaraj added.

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