With many people shopping away their lockdown blues, it has been reported that “Buy Now Pay Later” (BNPL) FinTechs have experienced an increase in revenues since the onset of Covid.
Further, the Financial Conduct Authority’s interim chief executive Christopher Woolard has explained that the FCA has seen an “extensive shift to [BNPL] products”, that due to their business model largely remain outside of the FCA’s jurisdiction.
The Financial Conduct Authority announced on 16 September that it is launching an inquiry (lead by Christopher Woolard) into BNPL companies as it investigates lending practices in the unsecured credit market.
The FCA states in its press release:
The Review will concentrate on how regulation can better support a healthy unsecured lending market. It will take into account the impact of the coronavirus on employment security and credit scores, changes in business models and new developments in unsecured lending including the growth of unregulated products in retail and the workplace.
Recommendations coming out of the review will be made to the FCA Board in early 2021.
"The Financial Conduct Authority (FCA) has announced that Chris Woolard will chair a review of the future regulation of the unsecured credit market, reporting to the FCA Board"