Q: What impact does the above noted company have on GSY and PRL. The recent ads demonstrate an active challenge.
5i Research Answer:
Fairstone is connected with Smith Financial and Home Capital, which Smith acquired. It has merged the personal lending businesses. It is a competitor to the loans business of PRL/GSY but not really a new competitor, just the rebranding of two former competitors as one. It is trying to buy market share, however, and could pressure the sector in the short term.