COVID has once more highlighted the importance of effective consumer financial services for financial and mental wellbeing. Beyond COVID, climate change, demographic trends and the changing nature of work all present major economic and financial challenges for individuals and households. On the other hand, new and emerging  technologies such as AI offer tremendous opportunities, for example, to develop new and better financial products and services. No doubt, exciting times are ahead for consumer finance.

We are launching the Consumer Finance Salon to create a forum where finance practitioners, technology experts, policy makers, regulators and scientists meet to discuss emerging trends, new technologies, ethical challenges, policy proposals and the latest research relevant to consumer finance.

The topic of our first salon will be 'BNPL – beautiful now, problematic later?' Professor Kevin Davis (The University of Melbourne) will raise a number of financial and regulatory issues associated with the rise of BNPL services in Australia and overseas, including

Should the definition of “credit” in legislation be changed to capture deferred payment arrangements such as BNPL?

BNPL has emerged in a low interest rate environment, conducive to its business model. Is it viable in a high interest rate world (where merchant fees would need to be higher for viability)?

The BNPL business model has close similarity (and some obvious differences) with the supply-chain financing model. Does the recent failure of the Greensill group provide any lessons about risks of failures in the BNPL sector and their implications?

How are new and emerging technologies changing the way people use payment services and credit products?

Michael Saadat (Vice President, Global Regulatory Affairs, Afterpay) will offer a response. Their reflections will be followed by an open debate.

We look forward to seeing you at the first Consumer Finance Salon.

Kevin Davis AM is Emeritus Professor of Finance at the University of Melbourne and a member of the Australian Competition Tribunal. He was Research Director of the Australian Centre of Financial Studies and a Professor at Monash University. In 2014, Kevin was a panel member of the Australian Financial System Inquiry. He has undertaken an extensive range of consulting assignments for financial institutions, business and government, has held a number of board positions and is an active contributor to public policy debate. Details of recent publications and contributions to policy debate can be found at www.kevindavis.com.au.

Michael Saadat is Vice President, Global Regulatory Affairs at Afterpay. Previously, he was Senior Executive Leader (Deposit takers, Credit and Insurance) at ASIC as well as ASIC's Regional Commissioner for New South Wales. Prior to those roles, Michael worked as Director and Head of Compliance for Citigroup's Consumer Bank in Australia.

Carsten Murawski is Professor in the Department of Finance and co-director of the Brain, Mind & Markets Laboratory at the University of Melbourne. In 2019, he was one of the authors of the University of Melbourne white paper 'FinFuture – The Future of Personal Finance in Australia'.

Kevin Davis (The University of Melbourne)
Ian Harper (Melbourne Business School)
Paul Kofman (The University of Melbourne)
Carsten Murawski (The University of Melbourne)

Consumer Finance Salon: BNPL – Beautiful now, problematic later?