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Introducing the Efficient Frontiers
It's 2023 and Salus is adopting a build-in-public ethos as we continue to construct our digital underwriting platform. Introducing: The Efficient Frontiers, Salus's new blog.
What is an efficient frontier? In investing, it’s optimizing a portfolio that generally achieves one of two things:
Creates the highest expected return at a specific level of risk; or
Creates the lowest risk at a specific level of expected return.
For anyone who puts their capital to work, one of these two goals is your efficient frontier. It’s the target, the objective that you’re always pointed towards, and you strive to get as close to the line as possible in any economic environment.
The mission of Salus is inextricably tied to the idea of the efficient frontier because today, we see where it sits in lending. We see where traditional metrics and underwriting draw the line on risk and return, particularly for borrowers without prime credit scores.
Our view is simple: the line is in the wrong place.
And it’s in the wrong place because the way it measures risk is wrong. We are building a digital platform that powers you to push beyond where the efficient frontier sits today. In the future, when we look at what we can do with the platform we’ve built, a simple pattern will emerge - we’re drawing the line in a much better place than it used to be.
The Efficient Frontiers will let you know what we’re doing at Salus, what we’re thinking about, and where we’re going next. We want to hear from you, so reach out to us at firstname.lastname@example.org or check out salusfintech.com to take a deeper dive into what we’re building. As always, thanks for coming on this journey with us.