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
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- GM, Goldman and Mastercard agree credit card partnership January 15, 2021General Motors, Goldman Sachs and Mastercard have agreed a multi-year relationship for co-branded rewards-based credit cards.
- Tier1 acquires financial crime vendor Alessa January 15, 2021Tier1 Financial Solutions, a leading provider of client relationship management (“CRM”) solutions, has acquired Alessa, a compliance and financial crime prevention solution.
- Fintechs call foul on exclusion from pay out of UK government-derived grants and loans January 15, 2021E-money and fintech payment firms are calling on the UK government to support the use of non-PRA-regulated accounts for the pay out of government-derived loans, grants and other funds alongside traditional bank accounts.