3 ms·
It seems like Kabbage specifically targets loans to online businesses, which are booming right now. Even still, it seems the decline predates the pandemic.
by seneca 6y ago
It seems like Kabbage specifically targets loans to online businesses, which are booming right now. Even still, it seems the decline predates the pandemic.
- cm2012 6y agoKabbage's loan portfolio is so underwater AMEX didn't even buy it in the deal.
- quickthrowman 6y agoAMEX already has enough loan risk on its books that it tends to correlate up and down moves with DFS rather than V and MC, it makes sense they wouldn’t want more.
- techsupporter 6y ago> rather than V and MC I'm not sure if I understood you correctly, so I apologize if I misunderstood. I would expect American Express--a lending bank--to track more closely with Discover Financial--also a lending bank--rather than Visa or MasterCard, which are card network operators. Visa and MasterCard don't write the actual lines of credit issued to customers; the card-issuing financial institutions (Bank of America, Chase, Your Local Credit Union[tm], and so on) do and the latter carry the loan risk. American Express and Discover also happen to operate their own card networks and issue card-accessed loans on them. You can get an American Express network card from other banks (like Wells Fargo and Bank of America) and you used to be able to get Discover network cards from other banks but I can't think of a non-debit one off the top of my head at the moment.