New innovations and lending products from fintechs/ banks: • BNPL 3.0, where the financial institutions still offer a BNPL service, but it’s guaranteed on an open balance on a credit card, which is with another financial institution. So the BNPL company still receives the commission from the merchants, but they don’t take the risk of non-payment. • Given the current situation we’ll see more innovative solutions like this, where if you can avoid being the organization holding the risk, but still get the transactional revenue with the relationship to the customer… this is the best position going into a recession. Predictions: • A huge factor in determining the future lending landscape in southern Europe is what happens in the Ukraine, as this is a significant driver of the markets here. If the war carries on, things will continue to slow down and prices will increase (i.e., supply chain, fuel/gas over the winter, etc.).
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