PAYMENT SOLUTIONS
“ It is very good for small businesses and individuals to have access to ready credit . At no stage should a bad credit be pushed forward as good credit , as we still have to remember the lessons from the subprime mortgage crisis of 2007 . Availability of credit is a factor of production , which propels the engine of the economy .”
Krishnan goes on to say that far from providing a counterweight to the online lending trend , incumbent banks are swiftly adopting the same technologies to help them stay ahead of the curve . Krishnan believes banks need to be more digitised and change their attitude to lending . He points out that those operating via customer-centricity will “ thrive ” because they will realise “ the needs of customers at the lowest cost point , and reconfigure their business model to be agile and nimble ” accordingly .
He adds , “ Let us not forget that we need large banks for big-ticket lending to Fortune 500 companies , and we need them as a “ utility ” to serve the global lending market . But for small loans , fintechs present a better alternative .”
Patrick Meisberger , Managing Partner at
CommerzVentures , a return-driven , non-strategic venture capital investment company founded in 2014 , says the amount of regulation applied to lending is strict enough to protect customers as well as lenders . “ There is a lot of regulation involved with lending overall , but this applies equally to banks , and it is right that consumers should be protected .”
FOUR ways to achieve financial sustainability
• Spend less , save more . Increase monthly savings and cut budgets where possible . Weigh up the pros and cons of new investments – and only opt for them if they are an absolute necessity .
• Only make affordable borrowing decisions . Avoid spending for an outward show or status symbol . Consider the loss to long-range goals in the ‘ spend now ’ mindset .
• Get financially agile . Work with business advisors to restructure investments , finances and streamline working practices to cut down on wasteful spending .
• Protect what you have . Take out insurance for financials . Having cover that protects your business interests in the event of a crisis could be a make or break decision .
76 June 2021