Any thoughts on the CBA bnpl product?, page-152

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thebarry111

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18/03/21

16:16

Post #: 51872528
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Originally posted by Andredamus1: ↑

The purpose of credit checks is to protect the consumer from harm. The requirement for BNPL to undertake credit checks has already been considered at length by the regulator with the outcome being the imposition of a PIP regime. Given that the % of Afterpay's revenue coming from late fees has fallen dramatically over the past 2 years, it seems very clear that any "harm" befalling consumers from Afterpay has also been reducing significantly (from a very low level to start with). Politicians have also been very clear in their support for Australia's infant fintech industry and have put the regulators on notice that they shouldn't be stifling its development with heavy handed regulation. There is no doubt that the CBA and the rest of Australia's banking cartel would love to see Afterpay regulated out of existence, but thankfully their political clout is much diminished post the Royal Commission and their self-serving ways are now universally recognised.

In response to @thebarry111.

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To say industry wide practice would be considered "heavy handed" is a bit of a stretch.

Maybe after pay's revenue from late fees has shrunk, but as of last november according to asic 1 in 5 BNPL users are missing payments.

This is over represented by the younger population.

To think this isn't a very real threat is short sighted.

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