Monthly Risk Performance
Overview
Consumer Risk Team
Consumer Risk Team
Observed strong applicant quality from GA, however there is opportunity to gather more insights to optimize policy going into FY'27. Through Pricing test we are offering as low as 10% for lowest risk segment (500bps lower) and 300 bps across all other risk segments to evaluate price sensitivity. Decline swap-in test is another opportunity for us to test credit expansion opportunities, and assess riskier segments where alternate data will help.
| Learnings so far | Proposed Strategy & Rationale | Impact Expected in April | |
|---|---|---|---|
| Pricing Test |
• 70% of credit-approved customers drop off; RS 1 is worst at 89%
• FNPL adoption is only 9% for our lowest-risk customers (780+ Vantage), suggesting price is a barrier
|
• Test setup — Randomized 80/20 split
• 500 bps reduction for RS 1 and 300 bps across RS 2–6
• Tests whether drop-off is driven by need vs. offer value
|
• Avg. APR may drop from 20.3% to 19.7%
• Incremental $1.9MM – $3.9MM in funded loans
• Overall loss rate to remain at 5.3%, as we expect more low risk customers to take loan with this test
|
| Decline Swap-in Test |
• 35% of customers are declined — we don't have cashflow or other alternative data to test
• For FY'27, learnings from declined segment will help with policy optimization and UW model
|
• Model PD up to 0.35 with good risk and income profile
• Small $ DQs in last 6 months and customer is in good standing currently
|
• Incremental +4% (56% → 58%) approval rate
• Incremental $2MM funded
• This segment estimated loss rate is at 27%, losses may increase by 30 bps
|
| Metrics | Sep-25 | Oct-25 | Nov-25 | Dec-25 | Jan-26 | Feb-26 | Mar-26 | Apr-26 |
|---|---|---|---|---|---|---|---|---|
| Num of Apps | 633 | 7,539 | 17 | — | 3,800 | 26,897 | 182,766 | 68,314 |
| Avg Vantage | 617 | 620 | 664 | — | 609 | 631 | 700 | 701 |
| Median Income | $69K | $70K | $97K | — | $55K | $58K | $81K | $82K |
| Approval Rate | 19.43% | 31.16% | — | — | 30.18% | 42.44% | 67.23% | 71.83% |
| Metrics | Sep-25 | Oct-25 | Nov-25 | Dec-25 | Jan-26 | Feb-26 | Mar-26 | Apr-26 | Total |
|---|---|---|---|---|---|---|---|---|---|
| # Loans | 62 | 1,613 | 265 | — | 9 | 5,738 | 25,084 | 8,194 | 40,965 |
| $ Loans | 0.1M | 3.3M | 0.5M | — | 0.0M | 9.0M | 41.1M | 14.1M | 68.0M |
| Avg. Loan Size | $1,746 | $2,045 | $1,818 | — | $934 | $1,563 | $1,639 | $1,715 | $1,661 |
| WA Term | 5.2 | 5.3 | 5.4 | — | 5.6 | 5.9 | 6.1 | 6.0 | 6.0 |
| WA APR | 23.93% | 19.97% | 20.13% | — | 22.27% | 19.38% | 16.40% | 13.78% | 16.46% |
| WA Vantage | 692 | 683 | 675 | — | 639 | 693 | 714 | 714 | 709 |
| Avg. RS | N/A | N/A | N/A | — | N/A | 2.8 | 2.4 | 2.4 | 2.4 |
| Med. Income | 90K | 97K | 79K | — | 53K | 72K | 81K | 84K | 81K |
| % $ from CK Low Risk | 31% | 39% | 44% | — | 67% | 53% | 56% | 61% | 56% |
| % Mobile Channel | 26% | 16% | 24% | — | 56% | 40% | 34% | 35% | 34% |
| Avg. DTI | 37% | 40% | 42% | — | 48% | 41% | 39% | 39% | 40% |
| % Had a State Refund | 47% | 31% | 29% | — | 44% | 41% | 40% | 37% | 39% |
| Metrics | Sep-25 | Oct-25 | Nov-25 | Dec-25 | Jan-26 | Feb-26 | Mar-26 | Apr-26 | Total |
|---|---|---|---|---|---|---|---|---|---|
| Volume | |||||||||
| # Loans | 62 | 1,613 | 265 | — | 9 | 5,738 | 25,084 | 8,194 | 40,965 |
| $ Loans | $0.1M | $3.3M | $0.5M | — | $0.0M | $9.0M | $41.1M | $14.1M | $68.0M |
| 7DPD+ Delinquency | |||||||||
| # 7DPD+ Rate | 6.5% | 5.8% | 6.8% | — | 0.0% | 4.9% | — | — | 5.2% |
| $ 7DPD+ Rate | 4.4% | 4.1% | 5.2% | — | 0.0% | 4.3% | — | — | 4.3% |
| 30DPD+ Delinquency | |||||||||
| # 30DPD+ Rate | 6.5% | 4.3% | 6.8% | — | 0.0% | — | — | — | 4.7% |
| $ 30DPD+ Rate | 4.4% | 3.5% | 5.2% | — | 0.0% | — | — | — | 3.7% |
| Roll to charge-off | |||||||||
| # Roll rate -> 30D to CO | 50.0% | 44.9% | 38.9% | — | — | — | — | — | 44.0% |
| $ Roll rate -> 30D to CO | 60.5% | 109.4% | 124.8% | — | — | — | — | — | 109.8% |
| Charge-off | |||||||||
| # Charge off rate | 3.2% | 1.9% | 2.6% | — | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% |
| $ Charge off rate | 1.7% | 1.8% | 2.9% | — | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% |
| Target loss | |||||||||
| # Target Loss Rate | — | — | — | — | — | — | — | — | — |
| $ Target Loss Rate | — | — | — | — | — | — | — | — | — |
| Payoff | |||||||||
| % Paid Off | 88.7% | 33.7% | 26.4% | — | 11.1% | 5.4% | 2.5% | 0.4% | 4.0% |