By next year, the aftershocks of the current coronavirus pandemic will fully be felt, according to experts with our sister publisher Packaged Facts. As a result, the market is expected to face a significant setback in 2021, as the corrosive effects of a global recession if not depression set in, along with fintech players’ tactical responses to the changed economic and consumer credit landscape.
Many companies in the sector are fueled by private capital interests that may or may not be willing to support the petri-dish experimentation of credit strategies that has characterized this new consumer credit industry. Packaged Facts points out that none of these companies has lived through an economic crisis and while this industry segment benefited from the after-shocks of the Great Recession, their own business models haven’t been stress-tested by a major downturn.
Even so, Packaged Facts argues that prime and super prime credit consumers will tend to return to that credit status, despite the significant personal finance setbacks that will follow from the COVID-19 economic downdraft. This means that prime+ debt they hold today may take a while—maybe even a long while--to be paid off, but that payoff will indeed happen.
Packaged Facts therefore projects the U.S. point-of-sale financing industry to claw its way back to aggressive double-digit growth, thereby approaching $2 trillion in revenues by 2025.
For more information, see our sister publisher Packaged Facts’ report Point-of-Sale Installment Loans: The U.S. Market and International Perspectives, with COVID-19 Market Impact Assessment. We publish market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, and pet products and services.