<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/marketing-cms/m2p-blog/2026/04/main_banner.webp" alt="Digital platform enabling secured credit card issuance" title="" id="koi7j3q1t" width="100%" height="347"><h2 class="heading-node" id="o73tekg22">The Mission to Expand Credit Access&nbsp;</h2>A leading private sector bank in India, known for its focus on innovation and serving over a million customers, has long been committed to financial inclusion. A key part of this mission is extending credit access to a large and underserved segment of the population: new-to-credit (NTC) customers. These are individuals with a stable financial footing, often with fixed deposits, but lacking the formal credit history required to access traditional unsecured credit cards.&nbsp;The bank identified a powerful tool to serve this segment: the <a class="link" href="https://m2pfintech.com/blog/secured-credit-cards-101-where-credit-meets-saving/" target="">secured credit card</a>. However, launching a modern, profitable, and scalable secured card program presented a significant technological challenge that legacy systems were not equipped to handle.&nbsp;<h2 class="heading-node" id="8eubv2umr" style="text-align: left">Overcoming the Hurdles of Secured Lending&nbsp;</h2>To succeed, the bank needed to build a program that was both low-risk for the business and seamless for the customer. This created a specific set of challenges:&nbsp;<ul class="list-node" id="hbjmh3y6i"><li>The Real-Time Lien Imperative: The core of a secured card is the lien against a fixed deposit (FD). A traditional, manual process for marking liens is slow, prone to errors, and creates a poor customer experience. The bank needed a system that could mark and manage liens on FDs in real-time.&nbsp;</li><li>Dynamic and Automated Limit Assignment: Credit limits for secured cards are directly tied to the value of the collateral. The system had to be able to dynamically assign and adjust credit limits based on the FD amount, without manual intervention.&nbsp;</li><li>The Demand for a Fully Digital Experience: Today’s customers expect instant gratification. A lengthy, paper-based application and approval process was a non-starter. The bank required a 100% digital onboarding flow, from application to instant virtual card issuance.&nbsp;</li><li>The Need for Operational Efficiency: Running a card program at scale requires immense operational efficiency. The bank needed to automate everything from underwriting and lifecycle management to billing and collections to ensure the program's long-term profitability.&nbsp;</li></ul><h2 class="heading-node" id="hg205j0mo" style="text-align: left">A Partnership for Automation-First Issuing&nbsp;</h2>The bank chose to partner with M2P Fintech, leveraging our end-to-end <a class="link" href="https://m2pfintech.com/blog/why-switch-to-a-new-age-credit-card-system/" target="">Credit Card Management System</a> (CCMS) to build a fully digital, automation-first secured credit card program from the ground up. Our platform was designed to solve their specific challenges head-on.&nbsp;1. Real-Time, API-Driven Lien Management:&nbsp;M2P's CCMS integrated seamlessly with the bank’s core systems. Through a suite of robust APIs, we enabled the platform to query a customer's existing FDs and place a real-time lien against them, serving as the automated foundation for the entire program.&nbsp;2. Configurable and Dynamic Credit Limit Engine:&nbsp;Our platform's configurable rules engine allowed the bank to set precise parameters for credit limit assignment (e.g., 80% of the FD value). This process is fully automated, ensuring credit limits are assigned instantly and accurately upon approval without any manual calculation.&nbsp;3. End-to-End Digital Workflows:&nbsp;The M2P platform provided the complete digital backbone for the program. This included:&nbsp;<ul class="list-node" id="4n9ykfks7"><li>Digital Onboarding &amp; Underwriting: A seamless, API-driven application flow with automated decisioning.&nbsp;</li></ul><ul class="list-node" id="xv5ti697d"><li>Instant Card Issuance: The ability to issue a virtual card to the customer's mobile app immediately upon approval.&nbsp;</li></ul><ul class="list-node" id="spw0zlna2"><li>Full Lifecycle Management: Automated processes for billing, statement generation, collections, and customer service inquiries.&nbsp;</li></ul>This automation-first approach freed the bank from the operational burdens of legacy systems, allowing it to focus on growth and customer relationships.&nbsp;&nbsp;<h2 class="heading-node" id="k1dcvzsi4" style="text-align: left">Speed, Efficiency, and Scalable Growth&nbsp;</h2>The results of the partnership were transformative. By automating the most complex aspects of the secured card lifecycle, the bank achieved a new standard of operational excellence.&nbsp;<ul class="list-node" id="lx82ju8kb"><li>Dramatically Faster Onboarding: The fully digital journey, powered by M2P's CCMS, led to a massive reduction in customer onboarding time, creating a superior customer experience.&nbsp;</li></ul><ul class="list-node" id="06ck33dgg"><li>Significant Reduction in Manual Operations: Automation across underwriting, lien marking, and servicing drastically reduced the need for manual intervention, making the entire program leaner and more efficient.&nbsp;</li></ul><ul class="list-node" id="tb9b5ewdg"><li>A Foundation for Future Growth: The success and efficiency of its organic secured card program gave the bank a powerful, scalable platform. Building on this foundation, it has now confidently expanded its portfolio to include multiple co-branded credit card programs.&nbsp;</li></ul><h2 class="heading-node" id="66qulenzz" style="text-align: left">A Blueprint for Inclusive and Profitable Lending&nbsp;</h2>The bank's success provides a clear blueprint for how financial institutions can leverage modern technology to achieve the dual goals of financial inclusion and profitable growth. By partnering with M2P, the bank transformed a traditionally complex product into a streamlined, digital-first experience that serves both the customer and the business.&nbsp;Building secured credit programs shouldn’t limit reach or growth. Discover how <a class="link" href="https://m2pfintech.com/credit-cards/" target="">M2P’s digital‑first credit stack</a> enables lenders to scale seamlessly, reduce risk, and expand financial access. <a class="link" href="https://m2pfintech.com/contact-us/?utm_source=website&amp;utm_medium=internal&amp;utm_campaign=M2P_SecuredCC_CaseStudy" target="">Schedule a demo</a> to learn moreFollow us on&nbsp;<a class="link fui-Link ___1q1shib f2hkw1w f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1s184ao f1mk8lai fnbmjn9 f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh fhgqx19 f1olyrje f1p93eir f1nev41a f1h8hb77 f1lqvz6u f10aw75t fsle3fq f17ae5zn" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noreferrer noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech" target="_blank">Twitter</a>&nbsp;for insightful fintech bytes curated for curious minds like you.

The Digital Blueprint for Secured Credit: Expanding Financial Access

Secured Credit Cards 101 - Where Credit meets Saving

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-8-8.webp" alt="M2P Fintech" title="" width="100%" height="612">Is your credit score below 670?Don’t worry. You can still own a credit card.Yes, <a class="link" href="https://m2pfintech.com/blog/secured-credit-cards-101-where-credit-meets-saving/">a secured credit card</a>!Unlike regular credit cards, secured credit cards do not mind you having a low credit score. In fact, they help build your credit score and earn rewards as you spend.Not heard of secured cards before?That’s because even though secured cards have been in existence for more than 20 years, it comprises less than 2% of the cards market share in India.But that scenario is rapidly changing now.Fintech firms like <a class="link" href="https://m2pfintech.com/">M2P</a> have taken the initiative to enable financial inclusion by simplifying secured credit card issuance and program management. Banks like SBM, SBI, Kotak, RBL, ICICI, and other fintechs like <a class="link" href="https://wizi.app/home">Wizi</a>, <a class="link" href="https://www.sliceit.com/">Slice</a>, and a few others are issuing secured cards to customers with less-than-ideal credit scores.<h2 class="heading-node" id="ea78" style="text-align: justify">What is a Secured Card?</h2>A <a class="link" href="https://m2pfintech.com/blog/secured-credit-cards-101-where-credit-meets-saving/">secured card</a> is a credit card that allows you to spend in a risk-free and rewarding manner. They are backed by a <a class="link" href="https://m2pfintech.com/blog/how-can-banks-and-nbfcs-leverage-the-potential-of-digital-fds/">fixed deposit (FD)</a> that is used as collateral by the issuing bank. A secured card earns you rewards not just in the form of cash backs but even gold.Consider you want to purchase a secured credit card. All you need is a fixed deposit as supporting collateral. The FD can be an amount of your choice that will act as a credit limit for your card. The fixed deposit serves as a kitty for card issuers to rely on when there is any default in your payments.Wonder if a secured credit card is a good fit for you?Here are 3 compelling reasons you need to know.<h2 class="heading-node" id="779e" style="text-align: justify">3 Reasons Why Secured Cards are a Good Fit for You</h2>Regular credit cards have been overshadowing the secured cards market for a long time now.But not anymore!People reach out to companies that issue secured cards to enjoy the following spend-worthy benefits.<h3 class="heading-node" id="2ada" style="text-align: justify">1. Earn While You Spend</h3>As India’s retail inflation rate rose to 4.48 % this year (as of October 2021), saving while spending seems like an impossible task. But, secured cards are here to bridge those gaps.Secured cards help you earn interest on your fixed deposits while you spend from your card. Apart from the rewards like cash back and airline miles, secured cards can also earn you tangible rewards like digital gold for every spend.For example, ICICI’s coral card earns you double reward points on supermarket and dining transactions. Another noteworthy example is <a class="link" href="https://gild.cards/">Gild from Wizi</a>, India’s first secured card that rewards 2% gold for every spend.<h3 class="heading-node" id="7fad" style="text-align: justify">2. Build or Improve Credit Score</h3>Getting secured cards is the easiest way to improve your creditworthiness. It helps you build a good credit history and even improve your existing negative credit score by making timely payments. Even in case of missed payments, the amount will be deducted from your security deposit. So, there is no negative impact on your credit score.Once you have stepped into the world of secured credit cards, the credit bureaus get notified of your payment history within 30–45 days. This is how your credit score will improve over time, and you can get thumbs up for other credit options or loans in the future. These cards are really great for those who cannot get hold of a lender because of their bad credit score.Take a look at credit score ranges to know how issuers decide and approve your credit line.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-9-6.webp" alt="M2P Fintech" title="" id="37xsnx4zf" width="100%" height="612"><h3 class="heading-node" id="42be" style="text-align: justify">3. Spend at Zero Risk</h3>Secured cards give their users zero-risk spending options. Present-day customers enjoy using secured cards more than unsecured cards because of “the investment + saving + rewarding mechanism.”Secured cards are considered featherweight as you can also start off with a smaller security deposit and gradually increase on a monthly basis. This way, you can avoid getting into debt and save your credit deposit from getting deducted in case of missed payments.It also poses no risk for the card issuers as the fixed deposit or collateral reduces the credit risk. So, it is risk-free for issuers as well, as they can recover the outstanding amount from FD in bad situations.<h2 class="heading-node" id="c733" style="text-align: justify">Rewarding Savior</h2>Secured cards are a savior for people who face challenges with personal finance management. It allows you to make stress-free card payments, get tangible rewards, improve credit scores, and plan future expenses within the limit. Secured cards also help build your financial health as it is backed by a cash deposit for security.Having known these top reasons, you know what to do next.Yes, get your own secured card.Happy Spending! Happy Saving!<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

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