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This Financial Adviser Has 75 Million Clients

Man with credit card and mobile phone doing online payment, web money and e-commerce

The following is an excerpt from Ben Steverman | July 26, 2017 | Bloomberg.com |

Credit Karma had a problem. How does a financial-services company win the trust of a generation that just lived through a financial crisis? And a new, online company that asks for your personal information, at that?

Today, a decade after its launch, Credit Karma claims 75 million members, including almost half of all U.S. millennials and a third of all Americans with credit reports. The private, San Francisco-based company, which says it has been profitable for the past two years, recently revealed that its revenue jumped 50 percent last year, to more than $500 million.

Now the site, known mostly for giving out free credit scores and helping people find auto loans and credit cards, wants to remake Americans’ financial lives from top to bottom, and it’s starting with two of the most complicated and unpleasant tasks of all: filing taxes and getting a mortgage. This year the company launched both a free tax preparer and a new service to streamline the process of securing a home loan.

“Our goal is to be the best product [in] the whole spectrum of financial-services products that consumers could use help on,” founder and Chief Executive Officer Kenneth Lin said. “There is a real opportunity in this space to change consumer finance.” Among Credit Karma’s competitors: NerdWallet, Credit Sesame, and Credit.com.

For more visit: bloomberg.com