Why was the credit card industry in 1986 structurally ripe for disruption?
Replied byNigel Morris
Co-founder & Managing Partner at QED Investors
Niche: Finance
Revenue: Not Publicly Disclosed/month
Location: Alexandria, Virginia, United States
Started: 2007
The industry was completely undifferentiated and lacked testing. Every bank offered the exact same product with no regard for customer risk profiles. High-risk customers were excluded, and low-risk customers were overcharged to subsidize others. This lack of risk-based pricing created a massive opportunity for an empirical, data-driven competitor.
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