Fintech Takes Facing Credit: Pressure Points
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Dec 10, 2025 Dave Wasik, a partner at Second Order Solutions with expertise in credit risk and consumer lending, discusses the evolving landscape of lending. He highlights persistent delinquency rates and the resilience of credit cards, emphasizing their clear benefits and issuer concentration. The conversation delves into the concerning shift of Buy Now, Pay Later (BNPL) from big-ticket items to everyday expenses, alongside the risks posed by private credit's rapid growth and lack of transparency. Finally, Dave shares insights on the future of credit scoring systems.
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Why Credit Cards Hold Up
- Credit cards remain resilient due to clear utility, rewards stickiness, and flexible minimum payments.
- Top issuers control most cards, so experienced, regulated banks moderate competitive risk-taking.
Build Bureaucracy Before Rapid Card Growth
- When launching or scaling a card business, build strong second-line controls and institutional experience before aggressive growth.
- Avoid rapid origination without credit operations that have recession-era scar tissue.
BNPL Moves Into Everyday Spending
- BNPL shifted from financing durable goods to everyday purchases like groceries and restaurants.
- That move raises concerns because BNPL often lacks bureau reporting and may be additive to total household debt.