/predictions

News and resources on the future of fintech and industry predictions

Erik Zingmark, Head of Transaction Banking, Nordea, talks us through the impact of the turbulent year before on the transaction banking landscape and gives his outlook for the year ahead with regards to customer behaviour, infrastructure collaboration, and regulation.

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Discussion
Top Reasons Why Mobile Banking Will Thrive In 2021
Melvin Haskins

Melvin Haskins

  You need to differentiate between digital banking and mobile banking. You seem to mix and match the two and blur the lines between them. 5G takes mobile banking to a different level, but not neccessarily digital banking. Those people, like me, who do all of their banking on-line through a laptop on a secure home network, do not use mobile banking, but are a digital banking user. I do not trust the security on my mobile phone and do not put banking aps on to it. I do not need a telephone to make a payment. I have credit and debit cards to make them and value the security behind them.
Buy now, regret later? Brits face £2.3bn bill for Christmas shopping
Ketharaman Swaminathan

Ketharaman Swaminathan

  I'm afraid you're the one who has it all wrong. PayPal approves BNPL basis SSN. LazyPay approves BNPL basis Verified Mobile Phone #. They're only two examples of many BNPL providers who do not even seek any repayment funding source while approving BNPL. That being the case, BNPL repayments cannot be automated. Ergo, my assertion that people forget repayment dates is right.  I am talking about repaying BNPL with Credit Card. Whatever inexpensive or free credit provided by BNPL is not relevant for those payments. Again, my assertion is right. 
Buy now, regret later? Brits face £2.3bn bill for Christmas shopping
A Finextra member

A Finextra member

  You're basically wrong on all of your assertions. Credit card users are far more likely to default than BNPL users, and the implications are much more severe (compound interest, debt traps) with credit cards. People can't miss repayments through forgetfulness as they're automated. Even the minority of BNPL users that use credit cards are still able to access inexpensive - or often free - credit by using BNPL (and accrue the same cashbacks or points etc which is the only real reason people still have credit cards).
Buy now, regret later? Brits face £2.3bn bill for Christmas shopping
Ketharaman Swaminathan

Ketharaman Swaminathan

  Missed Payments and Overspending are features of all form of Credit, including Credit Card, but their high incidence in the case of BNPL is noteworthy. I remember reading that a lot of people miss BNPL repayments not because they don't have money to pay on the due date but because they forget about the due date. This might seem strange in the day and age of calendar apps on smartphones and alerts on smartwatches but, I guess, some things never change! Another thing is, in a quirk of consumer behavior, many BNPL customers apparently repay their installments with good old Credit Card! Which begs the question as to why they didn't pay for the basic purchase with Credit Card in the first instance!