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Fintechs’ Subprime foray


According to The Wall Street Journal, Fintechs are increasingly stepping into the subprime lending arena, a sector that had a significant causal relationship with the last great recession.

The Journal’s article states: Financial-technology startups are stepping into a void increasingly left by credit-card-issuing banks: lending to customers with poor credit histories.

LendUp Global Inc. and Fair Square Financial LLC, which focus more heavily on riskier borrowers, mailed out roughly 35 million credit-card offers during the first half of the year, according to market-research firm Competiscan, up from 7 million during the same period last year.

 


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2018-08-14T15:07:28+00:00