Massive opportunity cost, page-22

Amazing to see some posters here whinging about the share price yet don’t even understand the difference between loan eligibility and how a risk based pricing model works.

Nowhere does it say Wisr won’t lend to people with lower credit scores. They use the customer credit score to offer risk based pricing which means the better your credit score and the strength of your application, the better the interest rate you will receive. Conversely, the worse the credit score the higher the rate they charge. If you spend 5 minutes on rate city or finder you will see there are more and more smaller lenders in the personal loan space that are taking this approach.

There are now more and more online lenders who are offering this risk based pricing approach for personal loans. Given this strategy has now been adopted by other lenders (and is not difficult to copy anyway), this arguably makes other features even more important from a differentiation perspective (the application process, turnaround time, the app and the round up feature.