Is there reason to be a lending company for other lending companies rather than just lending directly and using the innovative founder types as franchisees of a sort?
When lending to an end borrower, a lender is often focused on their ability to underwrite the borrower to understand the risk of the loan.
We think it's very unlikely that Level could become the best underwriters of all the different types of borrowers in the world by lending directly.
Instead, the most innovative founder types in the lending space are often finding creative ways of using non-traditional sources of data or underwriting techniques to be able to lend to borrowers that otherwise may be left underbanked or unbanked.
So hopefully, by lending to lending companies, Level opens the door to new ways of thinking that we ourselves may have missed.
But you make an excellent point that there could be different flavors of the Level platform that could enable the same end result of allowing innovative founders to explore new ideas.
This is great I know insurers for insurers absolutely kill it and I think this will be a massive success. Question though, would you lend to new startup lending companies - i.e. those without any lending history? That's the game changer - presumably you could have contracts that give you extra oversight in this case?
