I'm surprised it's worth more than Zero. The only people that this makes money for is the employees, the banks that lend them money, and the brokers that bring them the loans.
The business model is flawed, they are in a scaling trap: they cant scale up or down to profit. To write more loans they need to spend more on marketing and overhead, take bigger risks or charge below market interest rates to win business.
They are adding zero economic value lending to and chasing after the same high credit score customers everyone wants, rather than adding some actual economic value by managing defaults or identifying customers asymmetric to and better than their competitors / the rest of the market. Thats how you make a profit.
Anyone can lend money like they do, all this tech and app and round up they talk about is nonsense, clearly, because after all these years they would be making a proper margin if they were actually adding any economic value.
Add to My Watchlist
What is My Watchlist?
