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
- Deutsche Bank in talks to sell Postbank IT unit October 22, 2020Deutsche bank is reportedly in talks with Tats Consultancy Services over the sale of its Postbank IT systems unit and the transfer of 1400 staff to the Indian conglomerate.
- Varengold Bank shares status of Institutional Investment & Fintech Funding October 22, 2020Alison Harwood, Head of London Branch, Varengold Bank, speaks to FinextraTV about the type of companies institutional investors are looking for and what makes a great relationship, the immediate impact of Covid-19 on institutional investment, the status of funding the fintech community, and whether institutional investors are more cautious and considered in who they lend […]
- Sopra Steria falls victim to ransomware attack October 22, 2020European IT services group Sopra Steria is battling a suspected ransomware attack on its network.
- PayRay bank opens up for business in Latvia October 22, 2020PayRay Bank has continued its planned expansion and has started operations in Latvia.
- Which? calls for post-Brexit rule change to protect victims of APP fraud October 22, 2020Consumer group Which? is urging the UK Government to introduce a post-Brexit rule change that would force banks to reimburse victims of authorised push payment fraud.