PAYMENT SOLUTIONS
“ 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 ”
PATRICK MEISBERGER MANAGING PARTNER , COMMERZVENTURES it bluntly , she argues , investing in digital lending technologies is not the answer .
“ At a time when people are experiencing a great deal of financial anxiety due to the pandemic , banks have a duty to look after their customers ’ well-being . They must focus on helping their users save money , invest it , and encourage them to be more mindful of their financial futures rather than providing more avenues into debt . And they need to act now , not in five years ’ time .”
Helander acknowledges that this requires changing the mindset of an entire generation , “ debunking the myth that borrowing money is a normal thing to do , and instead highlighting the importance of saving for long-term goals .”
She continues , “ By placing financial well-being at the core of their strategy and implementing a customer-centric approach , which prioritises emotional engagement , banks will be able to develop financial tools that suit their customers ’ needs , and crucially , that help them rather than hinder them .”
Helander isn ’ t against lending but says the manner in which it is done should be responsible and mindful of the dangers unhealthy debts and “ the pitfalls of BNPL schemes ” pose to borrowers .
She adds , “ Crucially if customers recognise that banks genuinely care for their well-being , they will be more likely to prolong their loyalty to that bank . The number of young people that are encountering debt problems continues to grow daily , and one of the biggest contributing factors is the online lending revolution . If we do not act now , the impact on our economy could be detrimental .”