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Komfie Manalo, Opalesque Asia: FinTech is still a relatively young industry and players still do not know what realized default rates will be if there is a strong recession, said Tristan Grué, the CEO and founder of online lending marketplace Bolden during the latest Opalesque 2016 France Roundtable.
He said that Bolden uses models and various expert analysis from different data providers, suggesting that 2-3% default rates per annum in a normal environment and 7-9% in a stressed environment.
Grué stated, "At Bolden we calibrate default expectations in our models and we remain highly selective with less than 1.6% of companies obtaining a loan, from 20-60 demands per day."
Recession might stronger in the UK than the rest of Europe
Reacting to the question of default rates in a stressed environment, Gilles Guerin, CEO of BNP Paribas Capital Partners, which is the alternative manager selection platform of BNP Paribas, said that there could be a kind of a dichotomy between UK and the rest of Europe, because the recession may be stronger in the UK than it will be in the rest of Europe.
"One could make the point that in case that the UK is going down, it could be positive for France, Germany, Netherlands, etc., especially in the financial industry," Guerin said and added, "And even U.S. companies that have traditionally seen UK as a port of entry towards the European Union...................... To view our full article Click here
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