Fintech Layer Cake LoanPro’s Scott Johnson on launching credit cards, lessons from Galileo, and more
Mar 6, 2025
Scott Johnson, President of the Card Division at LoanPro, boasts over two decades of fintech experience, including pivotal time at Galileo. He dives into launching credit cards, emphasizing the importance of strategic partnerships and innovative design. Scott reveals the innovative concept of transactional level credit, which customizes interest rates per transaction. He also discusses the evolving landscape of credit cards, compliance challenges, and the need for fintechs to work with regulators to shape policies that benefit consumers.
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Foundations for Credit Cards
- When launching a credit card, start with choosing the right issuing bank as it centralizes many key processes.
- Evaluate processor connections, network partnerships, ledger capabilities, and outsource chargeback management early on.
Outsource Card Ledgering
- Avoid building your own credit card ledger unless you have vast resources; it's complex and full of edge cases.
- Outsource ledger and operational tasks to experts to focus on growing and marketing your credit program.
Differentiate via Transactional Credit
- Credit card differentiation mainly comes from interest rates and rewards, which makes the space very competitive.
- Transaction-level credit lets marketers create unique incentives like variable interest by merchant or location, enhancing customer engagement.