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> You can't infer anything about the cost of a particular car by knowing the cost of the seats. Oh man, my car analogy isn't accurate ;-) > Cars and Big Macs,
by nmrm2 11y ago
> You can't infer anything about the cost of a particular car by knowing the cost of the seats.
Oh man, my car analogy isn't accurate ;-)
> Cars and Big Macs, like pretty much anything, are priced in no way according to their manufacturing or contents cost
This may be true for cars and big macs, but you know what I'm saying -- knowing the components contained in a product is different from knowing the spread on that product, even if knowing the comnponents tells you something about the spread^1.
In any case, this is all irrelevant to the central and irrefutable point -- that that the way the algorithm works is of immediate and obvious importance to the customer.
> but not to the end consumer.
Sorry, but the burden of proof here is on you.
How is the algorithm not important to the end consumer? It's deciding how much money they get each week. How many things in life are less important?!
> but they are under no obligation to make those details public.
In fact, it'd be unsurprising to learn that they are.
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footnote 1: BTW, I think you're unintentionally arguing against yourself.
In the event that knowing the components (i.e. the leather, the algorithm) tells you nothing about the spread -- as you maintain in your last comment -- you're basically conceding my point that there is a difference between knowledge of components (i.e., what you're getting) and knowledge of spread. In which case revealing the components can't possibly be justified on the basis that companies shouldn't have to reveal spread.
My argument was that even when components do tell you about spread, sometimes it's still necessary to say what those component are. And there are clearly examples of products where "what you get" does reveal spread (e.g., anything closely tied to commodities w/ very little or inexpensive manufacturing).
But as I said, this is all a bit of a tangent.
- run4yourlives2 11y agoThat depends really... are they a bank/lender? Seems like this is the million dollar question, regardless of what they think they are. After all this though, I've got the following: 1. They seem to have a useful product that a good number of people could benefit from. A marginal step up from payday loans and credit cards. 2. They give off the appearance of transparency, but there is a lot there that doesn't add up. (In an other thread a founder seems to suggest that the bank retains all interest earnings on the "savings" accounts... that seems... off.) (Maybe that's how they skirt the regulations - don't collect any interest at all and receive some other form of payment... maybe a "bank partner fee" or something?) I'm cautiously optimistic that I'm just a little internet jaded and these guys are all on the up and up.
- nmrm2 11y ago> They seem to have a useful product that a good number of people could benefit from. I'm skeptical. Even if the algorithm is designed solely for the benefit of customers, there's very clearly some value extraction going on. It seems to me that personal finance training is a much better product for these individuals... > They give off the appearance of transparency, but there is a lot there that doesn't add up. This seems like a substantial business risk, right? What's to stop another company from coming along that is totally transparent and also just barely out-performs Even on payouts? Or even a non-profit that prices things to manage risk as opposed to make profit, probably undercutting Even in the process? Even's only defense against either is "nuh-uh, we're better", and I have a hard time seeing them winning that fight without full disclosure.