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Christine Laudenbach

@claudenbach.bsky.social

Professor of Finance @GoetheUniversity & SAFE | Board of Directors Behavioral Finance e.V. https://sites.google.com/site/christinexlaudenbach/

5 Posts2622 Follower97 Folgt
Elin Molin@elinmolin.bsky.social · last yr.

Excited to share our latest research on VoxEU! Together with @claudenbach.bsky.social, @kasperroszbach.bsky.social and #talinasondershaus, we explore how 'Buy Now, Pay Later' (BNPL) services improve credit access and risk assessments in consumer banking.

VoxEU @ CEPR@voxeu.org · last yr.

'Buy now, pay later' services have the potential to enhance #credit access, improve #lending decisions, and promote financial inclusion for underserved consumers. @claudenbach.bsky.social, @elinmolin.bsky.social, @kasperroszbach.bsky.social, Talina Sondershaus cepr.org/voxeu/column... #EconSky

Though ‘buy now, pay later’ loans are increasingly popular, critics argue that they encourage high costs and unsound borrowing. This column examines how such services influence conventional bank credit markets. Using loan-application data from a Nordic bank that also provides both traditional consumer loans and ‘buy now, pay later’ – allowing applicants’ creditworthiness to be assessed in the light of more comprehensive transaction data – the authors find that ‘buy now, pay later’ benefits both lenders and borrowers. It enhances risk assessment, fosters learning, and promotes financial inclusion by improving credit access and outcomes for higher-risk borrowers and underserved consumers.