Estimate the potential market share of Capital One Credit Wise.

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Estimate the potential market share of Capital One Credit Wise.

Asked at Capital One over a year ago

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Jinru Zhang · Answer 1 · 2021-10-05T04:01:24+0000

Creditwise:

Capital One’s CreditWise is a free credit monitoring service that allows you to access your credit score and credit report. You don’t need a Capital One account to use CreditWise, but you must be 18 or older with a valid Social Security number. The CreditWise app is available for both Apple and Android devices.

Creditwise Features:

Free credit monitoring

Credit reports from 2 of the 3 main agencies

Alerts on credit report changes

Free advice

See how future activity would affect your credit score

Detailed credit score reporting

History of on-time payments
Age of credit accounts
Amount of credit being used
Number of recent credit inquiries
Number of recently opened credit or loan accounts
Amount of available credit
Privacy breach alerts

Users Experiences:

Millions use the CreditWise app, according to Capital One. Overall, CreditWise reviews are positive, with users touting the CreditWise app for its helpful simulator, privacy notifications and tailored credit advice.

Users appreciate its free of use.

Evan Ferioli · Answer 2 · 2021-09-30T01:58:57+0000

Let's start by making some assumptions:

1. Consider only US market share.

2. Assume there are 350 million Americans.

Market share = Creditwise Users / Total Credit score tool users

Next, I want to estimate how many Americans have a bank account and are 18 or older. Those who don't have a bank account likely don't have a credit score.

I will estimate that 95% of Americans have a bank account, and of this 95%, about 80% are 18 or older.

So, 95% of 350M is 332.5, times 80% = 266M

Of the Americans that are 18 and older and have a bank account, there are likely a small percentage that don't use or have a credit score either because they don't take out loans, or are young enough that can have parents take loans out for them. Let's say this is 5% of the mentioned population. This gives us 252.7M Americans

Now that we have solved the denominator, let's find the numerator.

Of the creditwise users, there are two types:

1. Those with Capital One accounts that have signed up for Creditwise

2. Those that do not already have a Capital One account that have signed up for creditwise

So we can say:

Creditwise users = C1A + NC1A

Let's say that there are 50 million active and opened C1 accounts. Let's say of this, 80% use Creditwise. This is 40 million.

As for Non C1 Accounts that use Creditwise, since it is unlikely that many people will use it over their own credit reporting app, lets estimate that these accounts are 15% of the C1 accounts, or 6 million.

So we could say there are about 46 million Creditwise accounts. In the industry, there are about 253 million. Giving us a market share of 18%.

As for my answer, it seems a bit high since Capital One's market share is smaller than this (about 10%). I believe one reason why I might have overestimated is that there are more than 80% of Americans that are adults, or I could have taken away the 5% deductions. On the flip side, I may have overestimated how many C1 accounts there are and what percent of users outside of C1 have a Creditwise account.