Harmoney's CEO interviewed by Interest.co.nz
Harmoney's CEO, Neil Roberts, sat down with Gareth Vaughan of Interest.co.nz as part of their Double Shot interview series. Here are some of the highlights...
- Credit cards and personal loans are 12 and 10 times more profitable than the rest of the bank, respectively: “The beauty about personal loans is we’re attacking a very profitable part of the banks’ business, but it’s a very simple product that has produced a result for the bank that’s near riskless because it’s so predictable.”
- Peer to peer lending doesn't use leverage: “So we’re not loaded up with debt like a bank.”
- Investors can diversify their portfolio broadly: “If a borrower applies for $10,000, we’ll break that down to $25 lots (from lenders). And we encourage people to take a huge spread of their risk so if any one loan does get into trouble, it’s only a very small part of the overall portfolio.”
- Harmoney has a vision: “The vision is to be part of New Zealand’s savings and to keep the banks honest.”
- Peer to peer lending is a disruptor: “We’re hoping people will grow with us, see this for what it is; A disruptive play against the banks.”