Credit Karma's secret: Americans are addicted to checking their credit scores
“And if you then look at Credit Karma, you know, it's like over a 100,000,000 Americans use it.”
Is that really a big company? And if you then look at Credit Karma, you know, it's like over a 100,000,000 Americans use it. You've got 50,000,000 quarterly actives. You've got people logging in, on average, four times a month. And the reason that it works is that the credit score is actually this sort of mirror that people like to look in and see how they're doing objectively as an adult. Whether you're doing great, whether you're doing poorly, whether you're doing just okay, people really find a lot of sort of satisfaction in the feedback loop of looking at their credit score, not something that I ever would have predicted. And as a result, Credit Karma has many opportunities to sort of inform and sell their company their customers' products, and it really, really works. So how do you reflect on that? Like, missing that. I think when you have a formidable founder
About this clip
Anish Acharya reflects on missing Credit Karma as an investment opportunity, explaining how the company succeeded by tapping into people's psychological need to monitor their credit scores like looking in a mirror. He describes how this unexpected user behavior - with 100M+ users checking their scores 4 times per month on average - created a powerful business model for financial product sales.
Why this clip
A successful VC candidly shares a major investment miss and the counterintuitive consumer psychology insight that made the company successful.
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Anish Acharya
1 appearance · 6 clips
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