I am interviewing with Oportun for the Senior Manager Data Science position. Can anyone provide insights about the company? Is it good to join at this time around given the current state of the economy?
#datascience#Fintech#dataanalytics
Fin-tech lenders in the none-prime space are generally going to be counter cyclic vs the broader economy. So Oportun is likely doing pretty well in this economy.
Thank you for the input! Can you explain how none-prime space is counter cyclical?
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wtnc17lqNov 1, 2022
Of course! So the none prime space specializes in low dollar high interest loans. These loans tend to have higher defaults but are also quite profitable because of the interest rate and the companies risk based practices. The big cost for these business is actually marketing because of how competitive the space is.
When the economy gets worse a lot more people tend to fall out of prime status and find themselves looking for more personal lending options. Thus increasing the pool of customers and pushing down marketing costs by increasing response rates. As a bonus since these are people who are more willing to pay but just down on their luck die to market forces they tend to make for better customers with lower defaults.
So it tends to be a much friendlier environment for these business to operate in.
Fin-tech lenders in the none-prime space are generally going to be counter cyclic vs the broader economy. So Oportun is likely doing pretty well in this economy.
Thank you for the input! Can you explain how none-prime space is counter cyclical?
Of course! So the none prime space specializes in low dollar high interest loans. These loans tend to have higher defaults but are also quite profitable because of the interest rate and the companies risk based practices. The big cost for these business is actually marketing because of how competitive the space is. When the economy gets worse a lot more people tend to fall out of prime status and find themselves looking for more personal lending options. Thus increasing the pool of customers and pushing down marketing costs by increasing response rates. As a bonus since these are people who are more willing to pay but just down on their luck die to market forces they tend to make for better customers with lower defaults. So it tends to be a much friendlier environment for these business to operate in.