I have read yesterday about a young financial services focusing on people “left out in the cold by high street banks”, other words for subprime. They give unsecured loans and manage debt servicing online. They grow fast: 50% a year since creation. They keep hiring. Staff is young and a free iPhone is offered as part of the package.
Risky strategy? Definetly. A recipe for bankruptcy? Maybe. Or not. It all depends – mainly – if the young pushy directors of this group are well aware of the risks they take, managing them accordingly, aligning them to their risk appetite when stiring the strategy.
Would you to discuss more about alignment of strategy and risks? Please comment on this blog and come, for a live debate and drinks (all free of charge) in le Pain Quotidien, 1 Bread Street on Feb 9th at 5 pm.
See you soon!
Ariane
Finextra Research Headlines
- Crypto regtech Coinfirm raises $8; appoints Mircea Mihaescu CEO September 17, 2021Coinfirm, a regtech targeting digital currencies and blockchain-based finance, has raised $8 million in funding and appointed industry veteran Mircea Mihaescu as CEO.
- Mastercard and Mourinho offer UK customers the chance to win signed NFT September 17, 2021Mastercard is offering customers the chance to win its first-ever Non-Fungible Token (NFT), created in partnership with global amabassador and soccer coach José Mourinho.
- Crooks hijack bank OTPs to make fraudulent card payments September 17, 2021Hackers managed to hijack one-time passwords (OTPs) sent via SMS by Singapore banks to customers and use them to carry out fraudulent credit card transactions worth a total of S$500,000.
- Curve joins BNPL scramble September 17, 2021All-in-one card fintech Curve has become the second UK firm this week, after Monzo, to launch a buy now, pay later service called Flex.
- Zūm Rails taps Visa to boost security for real-time payments September 16, 2021Zūm Rails, a leader in open-banking and intelligent payment software, today announced a new set of anti-fraud tools to enhance the security of its Instant Deposit feature.