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
- Klarna rolls out hybrid work policy May 12, 2022BNPL giant Klarna is introducing a flexible working policy that lets employees pick between staying at home or going to the office.
- Ebury buys Brex to expand international payments to Brazil May 12, 2022Ebury, the Banco Santander-backed provider of corporate banking services to SMEs that trade internationally, has agreed to buy Bexs in a move that expands its international payments offering to Brazil.
- Starling doubles Cardiff headcount May 12, 2022Starling Bank has doubled the size of its Cardiff office and created hundreds of new jobs in the process.
- Google brings virtual cards to Chrome and Android May 12, 2022Google is working with Visa, Mastercard and American Express to bring virtual cards to Chrome and Android.
- US Bank and LiquidX bid to simplify supply-chain financing May 11, 2022US Bank has teamed up with trade-finance fintech LiquidX to help speed up and simplify supply-chain transactions between suppliers and buyers.