USP's in banking

I completely agree on all points.

I only half understand charging higher interest rates to customers who are less likely to repay a loan. On the whole charging a higher interest rate to risky customers means that the bank loses less money when one of those customers fails to repay the loan. I.e. higher profit from successful risky customers offsets the loss from failing risky customers.
But it just increases the chances that risky customers will fail, which surely increases the losses.

Starling could have left their interest rates alone and boasted about how they already complied with the new rules while offering a great interest rate. Instead they saw that every other bank was going for a cash grab and decided they wanted a cash grab too.

But looking at it objectively, if I needed an overdraft I’d still look to Starling because they still offer a better rate than the competition.

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