I am currently dealing with the topic “Management Innovation” and came across Grameen Bank. Microfinance without collateral and yet a profitable business model. It is an interesting approach that I just read some stuff about and thought I’ll just post it in this forum as I remember there were discussions about the problems of Nu entering the loan business, specifically regarding default risk of course and the complicated handling of collateral. They provide micro loans to mostly women and certain groups in a way that the individual borrowers feel the obligation to repay or - if they default - harm the whole group as they won’t be provided with micro loans anymore.
Just dropping this as food for thought.
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It reminds me the movie “Yes Man” in 2008 with Jim Carrey 