S&P Global states that with the ‘buy-now-pay-later’ (BNPL) market expected to grow almost 400% by 2025, incumbent lenders that still rely on traditional credit cards and cumbersome financing methods are set to lose out to the new age lenders. Though these new age lenders with BNPL models have been able to innovate quickly, the lack of comprehensive credit checks and whether the risk levels are sustainable for the long term is a cause of concern. This is where the banks may have an advantage as they hold massive wealth of data built over a long time with which they can assess risk more reliably. The banks will have to strike a perfect balance between innovation and caution.
Pay later servicing model requires lenders to support various configurations, which can be different for each partner such as interest charging methods, minimum due computations, periodic statements generation and defaults handing. Since this model requires digital offerings, lenders should have robust API packs to integrate seamlessly with third party systems. This model has low ticket size and high volumes, so lenders look for platforms, which are robust, flexible and scalable. In this webinar, our experts will share insights on how financial institutions can quickly develop secure, convenient and completely frictionless BNPL digital loan offerings with comprehensive capabilities and capitalize on the opportunity.
Key agenda for this session would be:
- Pay later product management
- Business models and configurations to support them
- Handling customer billing and periodic statements
- Complying with regulatory aspects such as asset classification and DPD computation
- Leveraging APIs to enhance completely digital experience
Click here to watch the on-demand version of this webinar.