Strategy, Skill, Success
Quick History of the Mobile Industry
The technology and cost shift history…
- In the not so distant past… Subsidized Phones: $1 phone + 2 year contract; Carriers covered the cost of the phone
- Smartphone Emergence: Uncoupling begins; Expensive Smartphones with hyper-competitive data plans became the norm
- Plans Become a Commodity: Data plans bottom out; Contracts become uncoupled, device costs skyrocketed
- Financing for a Few: Phone financing only available for above-average credit customers on tier 1 carriers
- Present day… The Under-served Majority: The inability of average to below-average credit customers to finance a phone, accessories, and device protection
The Mobile Industry Problem
The disconnect between customer, carrier and lender…
- Customer: Can’t afford to purchase a premium Smartphone; is unable to secure reasonable financing; and can’t navigate the intimidating, complex qualification process
- Merchant: Wants the ability to sell Smartphones to all credit profiles and lack expertise in addressing the credit score spectrum
- Lender: Is seeking new lending markets and customers and has difficulty identifying and marketing to mobile customers
The Mobile Industry Problem
More than half of mobile customers can’t access reasonable lending…
- Excellent Credit (850-800 FICO) = 20% of the mobile marketplace accounting for 51 million customers
- Very Good Credit (799-740 FICO) = 25% of the mobile marketplace accounting for 63.8 million customers
- Good Credit (739-670 FICO) = 21% of the mobile marketplace accounting for 53.6 million customers
- Fair Credit (669-580 FICO) = 18% of the mobile marketplace accounting for 45.9 million customers
- Poor/No Credit (579-0 FICO) = 16% of the mobile marketplace accounting for 40.8 million customers
The Street Cred Capital Solution
Closing the customer, carrier and lender loop…
- Customer-Instant approval to purchase up to $6,500 in phones, tablets, laptops, watches, accessories, smart home products, device protection and repair
- Merchant-No risk in selling products and servies to customers of all credit levels
- Lender-Multiple accredited lenders directly engaging their credit specialization in a new marketplace