relative to card providers and revolving bnpl providers like zip, apt do operate on thinner margins..so let's say comm bank get their way, and regulatory regime requires
- 100% credit checks at pre purchase stage, this will smash apt's operating model.
why? because average credit check enquiry cost is approx $4-5.. that's a huge expense considering average ticket size is $150-$200...and when average apt consumers transacts 10-15 times a year
so potentially paying $75 on credit checks per customer, every year.
so what's all the fuss with mandatory credit checks??
if customer outcomes matter (ie wbc was using this strategy during their recent resp lending case vs asic) then is it fair to burden credit providers like apt with extra layers of 'consumer protections' when apts credit loss rates are falling ??
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