As Western countries start the slow return to business as usual, lenders and retailers will need to establish lending programs that can cope with the demand from consumers who are ready to begin spending again but are likely to have faced a period of financial uncertainty.
The US declared a state of national emergency on Friday 13th March, with each state deciding their own degree of lockdown due to COVID-19. The retail landscape has transformed ever since self-isolation measures began and continues to evolve with each day that social-distancing stays in place. With a considerable initial shift towards online purchasing following the closure of stores and a substantial amount of job losses, now is an essential time for lending institutions and retailers to consider what consumers are likely to need after self-isolation ends and the brick and mortar shops reopen. It was in reaction to the financial crisis in 2008, that fintech installment loan companies gained popularity with millennials keen to avoid credit card debt. While it is uncertain whether COVID-19 will trigger a full recession similar to the one that occurred in 2008, enough economic uncertainty has been created to assume that the financing space must grow to accommodate consumer needs. Continue reading at PyamentsJournal.com
