California & Arizona - financial technology

Whole business is devided like this:

Investors and HQ - San Francisco

Back office - Around Silicon Valey

R&D - Silicon Valey

People intensive work - Arizona

Reason. U will find the most motivated people to invest in San Francisco, most motivated R&D in Silicon Valey, best support for reasonable money around valey way to Sacramento or south to Santa Cruz and more south and best intensive workers in Pheonix.

CEO & Director

In companies that are becoming bigger, entering from stage of group to holding or even from one company to group of companies is a good point to distinguish between a position of director and position of CEO. I am following SG and US model.

CEO
- the head of company acting independently within limitations of Articles of incorporation
- his basic responsibility is to follow the wish of shareholders, that are resprensented by directors
- an employee with varios schemes of renumeration
- with his own team of financial manager, operations manager, HR, PR...
- with an interest the increase perks for him and his team
- preparing with his team yearly financial statements
- influencing cash flow, growing company
- others....

director
- legally responsible for the company infornt governemnt (taxes...), suppliers, employees...
- appointing CEO and his team
- adjusting internal rules for CEO and his team
- representing wish of shareholders to maximase their returns
- closing down the company or opening new businesses
- reviewing yearly financial statements
- others...

It is critical to differentiate between this two positions as it is sometimes mixed. Director, as he is legally responsive for the company infornt of govnerment has to access his rights and act in the company's best interest. He is a last resource of the risk, as after him there is nobody.

2019-03-06 conflict of interest (loan originator vs. collection agency)

Conflict of interest between loan originator - a bank or fintech lender and collection agency may seem invisible.

Both of them care to maximise the amount of money collected and therefore deliver additional value to their liquidity (on a side of lender) or to their revenue (on a side of collection agency).

The interest difference come from the difference of the usage of the funds.

Lender needs to get the money for additional liquidity to lend money and to be able to distinguish a good borrower from borrower with high risk of not being able to repay. Any of this two options bring him a high reward, more people he can lend the money he got or bettwer underwriting to understand the market and how to grow on it.

Collection company is seing the advantage of collection from to the point it maximizes return in % of the money invested in collection company by its shareholders or investors to the point it maximases total profit from the proceedings.

Therefore there are some accounts that could be collected but are not by collection agency and there is so many accounts that could be advanced and so many underwriting models that could be improved once cooperated with collection agency on after collection cooperation.

Once taken in account the whole system of trust,  whole system of loan underwriting could be advanced and NPL ratios decreased.