(If you follow me on Twitter it is unlikely this is competitive with your best options, since it purports to target users who are not traditionally underwritable for credit, but it’s interesting how they must be modeling where the margin comes from.)
-
-
“Flagged? Flagged how?” Oh remember that part where you’d underwrite people without material credit history? You know what they have after using your card for a year? Credit history.
Show this thread -
And thus the (extremely sophisticated and well resources) firms serving VDC will get in touch with them, plausibly using information (addresses, etc) that you reported to the credit bureaus, and say “Why not switch to our product? It is better for you in every way.”
Show this thread -
And here is a hard realization: the big bank marketing department telling your best customers this? They are telling your customers God’s honest truth. They factually are offering better terms than you are, plausibly across the board.
Show this thread -
There was a time in which financial institutions had relatively undifferentiated offerings and so the covert subsidy by your VDC of your EE was laundered through the bank. You can still find this in some markets. (Japan is an interesting example.)
Show this thread -
And thus folks building products for underserved folks find that they generally need to make the economics work on the population which *does not* transition out from being underserved. And then the mission... sounds a lot less fun.
Show this thread
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.