Chase will "spend whatever we have to" to crush BNPL startups like Affirm
$Chase Corp.(CCF.US$ $Affirm Holdings(AFRM.US$
In this week's earnings call, Chase CEO was asked about BNPL companies and he said this:
In this week's earnings call, Chase CEO was asked about BNPL companies and he said this:
You saw a firm come out and it's no longer just about BNPL. They're going to have a debit card and attached banking accounts. So these are all different forms of competition which we have to respond to. And so that's why when we talked about, like, expenses, we will spend whatever we have to spend to compete with all these folks in our space.
Do you see this as a pro or con for $AFRM? On the con side, Chase just declared that they will spend whatever they need to compete.
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Enlly : They're a subprime lender.
This is where it gets a little hincky. Being a subprime lender they need to know the people they're lending to can pay. Currently it based off the same criteria all of us have to go through for a loan. My view on the following is personal, regardless, if the stimulus package goes through and people have guaranteed monthly income it works even better into AFRM's philosophy. If a client fails to pay and the contract is written properly they may be able to garnish those funds, I think.
The following I read a couple of weeks ago and cannot verify or find. AFRM may have underwriting from say Lloyd's or some other insurance company limited liability.