The consumer credit industry has middling to high sophistication with respect to customer segmentation by behavioral profiles, and so would look at what the product features of a card would accomplish over a portfolio of blended customer archetypes.
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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.”
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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.
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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.)
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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.
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End of conversation
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What if you agreed ahead of time with these customers that there would be no credit reporting? Illegal?
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