As Use of BNPL Has Skyrocketed, Industry Players Advocate Greater Scrutiny of BNPL Lending.
New report encourages FIs to follow regulator activity concerning point-of-sale lending as well as promote responsible borrowing behavior of BNPL customer July 7, 2022 (BOSTON) — The meteoric growth of buy now, pay later (BNPL) in the U.S. has led millions of consumers to adopt a new way to pay at checkout, both in-person and online. As the use of BNPL has skyrocketed, BNPL providers are seeing growing credit losses, prompting industry players to advocate greater scrutiny of BNPL lending, including improved visibility into lending patterns and better education for consumers. In a new Impact Report, BNPL and Credit Risk: Ignorance Will Cost You, research and advisory firm Aite-Novarica Group reviews consumer borrowing behavior concerning BNPL, providing insight into the moves credit reporting agencies and regulators are making to enable greater visibility into BNPL lending and to protect borrowers and lenders. “Financial institutions must opt into BNPL reporting capabilities from the credit bureaus,” said Ariana-Michele Moore, Advisor at Aite-Novarica Group and author of the new report. “Visibility into point-of-sale lending behavior will be critical to revising underwriting algorithms and properly accounting for BNPL loans when reviewing consumer loan applications.” A preview of the report is available online, and desk copies are available to qualified media. Please contact email@example.com or call Kaitlyn Labbe at +1.857.327.9442 for more information. About Aite-Novarica Group: Aite-Novarica Group is an advisory firm providing mission-critical insights on technology, regulations, strategy, and operations to hundreds of banks, insurers, payments providers, and investment firms—as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts. Visit us on the web and connect with us on Twitter and LinkedIn.