PAYMENT SOLUTIONS
“ IF THE ONLINE LENDING REVOLUTION DOESN ’ T SLOW DOWN ANY TIME SOON , WE RISK A SIGNIFICANT CONSUMER FINANCIAL CRISIS ”
ELIN HELANDER NEUROSCIENTIST AND THE CHIEF SCIENTIFIC OFFICER , DREAMS
Elin Helander is a neuroscientist and the Chief Scientific Officer at
Dreams , a leader in behavioural banking solutions that helps users set saving goals , invest and pay off debt .
Not one to mince her words , Helander says the trend towards buy-now-pay-later ( BNPL ) schemes , which have exploded in recent years , could lead to serious problems as they target younger generation spenders and propagate a culture of debt .
“ A concerning by-product of the online lending revolution has been the emergence of buy now pay later schemes ( BNPL ) over the past couple of years which are marketed almost entirely to millennials , brainwashing them with the idea that debt is a good thing ,” she says . “ There ’ s something inherently and morally wrong about that , and if the online lending revolution doesn ’ t slow down any time soon , we risk a significant consumer financial crisis .”
Helander goes on to say that with the introduction of new regulations like Open Banking and PSD2 , the number of fintechs has skyrocketed , and the level of competitive intensity within the online lending market is now the highest it has ever been . “ The online lending revolution does not look like it will slow down any time soon ,” she points out , stressing that this level of competition has motivated fintechs to use “ aggressive marketing tactics to catch the eye of consumers , luring people into making loans they might not necessarily need , and reaping profits from desperate borrowers .”