Deserve, an analytics-based fintech company, has raised $12m in funding led by Accel for the launch of first credit card designed for Generation Z.
Aspect Ventures, Pelion Ventures, Mission Holdings, Alumni Venture Group and GDP Venture were also involved in the funding round.
The credit card aims at granting more Americans access to fair credit products even if they are not qualified for traditional lending based on the FICO system.
FICO is based upon credit history, whereas Deserve uses proprietary algorithm to predict credit potential instead of using consumer attributes such as education, current financial health and future employability.
The benefits of the credit card include – 18-month subscription to Amazon Prime Student; 1% cashback on all purchases; no annual fee; no security deposit; no fees on foreign transactions; and SSN not required for international students.
Additionally, customers can upgrade to Deserve Pro Mastercard, which offers 3% cashback on travel and entertainment, 2% cash back on restaurants, and 1% unlimited cash-back on all other purchases.
Deserve CEO Kalpesh Kapadia said: “When I immigrated to America in 1995, one of the hardest parts of settling down in a new country was my lack of financial security and independence.
“A credit card is one of many tools that was not accessible to me. This is why I wanted to implement technology that rethinks the process for offering access to fair and simple credit. Deserve represents that mission.”