![]() Intuit could profit through referral fees on Credit Karma and by charging for premium versions of Mint and TurboTax.īrad Leimer, co-founder of Unconventional Ventures and a former head of innovation at Santander Bank, also sees customer data as critical to this deal. “Intuit could easily provide a simple, free version of Mint or TurboTax to Credit Karma customers, and thereby capture both behavioral and transactional data on identified consumers," Baker said. “That is much more immediately monetizable as third parties will pay for it as they do via participation on the Credit Karma site."įor instance, Credit Karma would know that a customer is looking for a credit card, has a 720 FICO score and is interested in cash-back rewards.Ĭredit Karma also uses behavioral data in its ongoing efforts to make behavioral tweaks to its user experience and user interface and maximize click-through, application and approval rates, Baker said. It doesn’t help much in finding new customers or learning what consumer needs are most actionable.”Ĭredit Karma, on the other hand, gets “immediately actionable behavioral data tied to an identity,” Baker said. “Transaction data is useful for providing existing customers with good automated advice and can be used to market other services that create new revenues. “That’s because it is a really big aggregator itself on behalf of its customers,” Baker said. Intuit has a lot of transactional information on its own TurboTax, Quickbooks and Mint customers, but little behavioral data, he said. “The way I think of it is one is in the transactional data business and the other’s in the behavioral data business,” he said. Baker, senior fellow at Columbia Business School and Columbia Law School, sees the deal as a data grab. There are at least four reasons Intuit could benefit from buying Credit Karma, observers said. The agreement is expected to be completed in the second half of the year provided the necessary regulatory approvals are obtained. Intuit CEO Sasan Goodarzi said on a conference call that he has a simple goal for the merger: empowering consumers to manage their money. The companies announced the deal late Monday afternoon. ![]()
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