📢Day 6/100: BNPL Risks in Emerging Markets
While Buy-Now-Pay-Later (BNPL) services are revolutionizing access to credit, they come with risks—particularly in emerging markets like Ethiopia. ⚠️
Key risks I’m addressing in my project:
1️⃣ Credit risk: Developing a robust scoring system to predict default probabilities.
2️⃣ Behavioral risk: Educating users to avoid overspending, especially first-time borrowers.
3️⃣ Operational challenges: Adapting BNPL models to Ethiopia’s infrastructure and regulatory environment.
💡 Discussion point: How can BNPL providers balance convenience with responsible lending practices?
#RiskManagement #BNPL #CreditScoring #FinancialInclusion #EthiopiaFintech
While Buy-Now-Pay-Later (BNPL) services are revolutionizing access to credit, they come with risks—particularly in emerging markets like Ethiopia. ⚠️
Key risks I’m addressing in my project:
1️⃣ Credit risk: Developing a robust scoring system to predict default probabilities.
2️⃣ Behavioral risk: Educating users to avoid overspending, especially first-time borrowers.
3️⃣ Operational challenges: Adapting BNPL models to Ethiopia’s infrastructure and regulatory environment.
💡 Discussion point: How can BNPL providers balance convenience with responsible lending practices?
#RiskManagement #BNPL #CreditScoring #FinancialInclusion #EthiopiaFintech