Max Levchin
👤 SpeakerAppearances Over Time
Podcast Appearances
Time value of money is a basic calculation.
You're borrowing money from us.
That means you have to pay a little bit for the cost of using our money.
But it is predictable.
It is profoundly predictable.
So it's actually a funny story or funny causality.
We are very good at it.
It's a core competency of the company to be very, very good at it.
But I maintain that anyone can be good at it.
You can learn math.
You can be extraordinary at it.
You can build models.
Math is not secret.
You can't patent it.
Most lenders actually don't care to be very good at it.
When we designed the company from the very beginning, we said no compounding, no late fees, fixed period.
We've eliminated the crutches.
The reason the industry is not very good at underwriting is it has no need to.
Like imagine, like you're literally saying, oh, I'm going to be a little bit late.