Credit Sesame has joined the growing list of digital-only banking platforms that can be called “challenger banks.” The platform, which provides credit score monitoring and personal finance advice, announced today it is launching Sesame Cash, a bank account the company will use to deepen its relationships with customers, offering tailored credit-building advice based on cash flow. 

“By adding cash, we’re now going after the entire consumer wallet and helping them achieve financial wellness faster,” said Adrian Nazari, founder and CEO of Credit Sesame. “We’re going to help our members stay on top of their credit payments, which means they will default less and be more profitable for our financial partners.” 

With the Sesame Cash data, the company can pull together customers’ personal finance and transactional information in one place and suggest tailored offerings. Credit Sesame generates revenue through the referral fees brands pay when users take up products based on the recommendations. 

Sesame Cash mirrors other digital-only banks, with offerings like real-time transaction notifications, a Mastercard debit card which can be locked and unlocked from within the app and early payday direct deposits. The account is free, and Credit Sesame will generate revenue from interchange fees. The company is partnering with the New York-based Community Federal Savings Bank to launch the account, which is available to Credit Sesame’s approximately 15 million users to start. Nazari said the goal is to make the account available to new members in about a month. 

Despite the apparent similarities, Nazari said he doesn’t lump Credit Sesame in with other so-called challenger banks because the company is intertwining cash and credit. Sesame Cash customers can get $5 cash back if their credit score improves by 10 points in a month, or $100 if their score improves by 100 points. Sesame Cash also offers $1 million in credit and identity insurance for every account, and customers get daily credit score updates. Nazari said Credit Sesame will eventually analyze consumers’ cash flow and bill payments to offer customized payment and credit-building advice. Although he didn’t give specifics on the time frame, he said new features would roll out on a monthly basis. 

See also: Credit Sesame wants to create a frictionless web application process

Peter Wannemacher, principal analyst at Forrester Research, said the new account could help grow the company’s recommendation service if consumers use Sesame Cash as their primary account and link outside accounts. But it’s still a bet on user adoption, he said. 

“That is a mighty big ‘if’ we’re talking about,” Wannemacher said. “It’s not totally clear how Credit Sesame — or its customers — will benefit unless people start to really trust the Credit Sesame brand more than others with their data.” 

San Francisco-based Credit Sesame was founded in 2010 as a digital platform for consumers to monitor their credit scores for free. The company monitors factors like open lines of credit, credit usage and payment history, and offers tailored advice on the best ways to improve credit.  

The launch of Sesame Cash comes on the heels of Credit Sesame competitor Credit Karma being acquired by Intuit last month for $7.1 billion. Although Nazari said the acquisition shows the value of credit-monitoring platforms, he said the move makes Credit Sesame the leading independent option for consumers. He also said the checking account creates deeper consumer relationships than Credit Karma’s expansions into savings, taxes and insurance.  

“People do taxes once a year,” Nazari said. “[Consumers] look at their money every day. People don’t look at their savings every day, but they spend every day. This is a much faster, easier approach to building a relationship with consumers.” 

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