UK launch & Zip biz -Next Month, page-277

APT is 1% and hasn't seen any material increase throughout the while Covid-19 saga. Z1P has seen increases. In my opinion ZipPay would have default rates closer to APTs 1% as their products are very similar (low value loans with quick repayment cycles).

It's likely the default rate as pushed up by ZipMoney which is much more like a traditional banking product of higher value and long repayment cycle. This creates risk as the loans are unsecured and long time horizons always creates a lot of uncertainty.

Banks look at products at a risk-adjusted basis (Risk-adjusted return of capital or economic capital are two measures they use). For example for a credit card (an unsecured product with pretty high defaul rate) the bank needs to charge a high interest rate to make it a viable product. I'd love to know if ZipMoney is even a viable product on a risk adjusted basis given the high risk and low return.

In my opinion Z1P should concentrate on ZipPay/Quadpay because ZipMoney is a drag that competitors like APT and SZL dont need to worry about.

All in my opinion.