Online lender RateSetter poached an exec from Lloyds to be its top risk guy
RateSetter, which lets people earn around 5.9% lending their money online, on Thursday announced Cyrille Sallé de Chou as its new chief risk officer. He joins from Lloyds, where is currently the credit risk director for mortgages.
Jim Gunner has also joined RateSetter in recent weeks as chair of the fintech startup's risk committee. He joined from HSBC, where he was senior executive for group risk.
Sallé de Chou says in an emailed statement announcing his appointment: "This is a unique opportunity to join one of the UK's leading marketplace lending platforms at a critical point in its growth and help the business become a significant mainstream financial services company.
"I am particularly impressed by the clarity of RateSetter's business model, which is based on truly unique and innovative customer propositions, setting standards that others have followed, such as the pioneering concept of the Provision Fund."
Because RateSetter is a marketplace, the savers who lend their money out on the platform are taking on the default risk of loans. But RateSetter has set up a provision fund that can cover losses. Despite default rates hitting a peak of 2.53% in 2014, no customer has so far lost money, although that's no guarantee they won't in the future.
CEO Rhydian Lewis says in an emailed statement announcing Sallé de Chou's appointment: "We are building a strong business based on managing risk. Cyrille is highly capable, highly experienced and highly regarded. He will be a real asset to our business as we continue to deliver value for our customers while carefully managing risk. I am delighted that Cyrille is joining RateSetter, and I look forward to welcoming him to our Executive Team."
RateSetter has lent a cumulative £1.1 billion ($1.6 billion) over its platform since launch in 2011. The startup has raised a total of $46 million (£31.8 million) from investors including Artemis and Woodford Investments, the asset manager set up by star fund manager Neil Woodford.