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
- Stripe buys card authentication outfit Bouncer May 14, 2021Stripe, a global technology company that builds economic infrastructure for the internet, announced today it has acquired Bouncer, a company building card authentication technology to reduce fraud during online transactions.
- Square unveils develop tools May 14, 2021Today, at Square’s fifth annual partner and developer conference, Square Unboxed, the company announced three new developer tools, including early access of the long-awaited Snippets API for Square Online.
- US Bank and Plaid take Open Finance to the next level May 14, 2021A collaboration between U.S. Bank, the fifth-largest bank in the U.S. and Plaid, the digital finance innovator with more than 11,000 financial institutions in its network, brings enhanced simplicity, transparency, and security to U.S. Bank customers who want to connect their accounts to third-party apps.
- US banks to pilot credit for people with no credit score - WSJ May 14, 2021Several big American banks, including JPMorgan Chase, are signed up for a government-backed pilot using alternative data to get credit to people with low or no credit scores, according to the Wall Street Journal.
- PayPal acquires Happy Returns May 14, 2021We started Happy Returns nearly six years ago with the mission of making returns beautiful for shoppers, retailers, and the planet.