25th April 2022
BNPL as an asset class for investors
In this new article published on Arteculate, Radek Jezbera, Kilde's CEO, unveils why, in his view, BNPL presents a lucrative opportunity for investors.
While the BNPL industry is still in its early stages, it has a massive potential for growth. Given rising inflation and the volatility of public markets, everyone’s looking for income products not correlated with the public markets, and BNPL is a promising asset offering high returns for a relatively low level of risk.
At its core, BNPL is a series of high-yield loans characterized by low risk levels: in Southeast Asian markets, such as Singapore and Hong Kong, the credit loss rates are between 3% to 4%, which roughly compares to those of credit cards, standing at 4% to 7%. At the same time, the nature of the BNPL product, which is a high-yield product with a high asset turnover rate, translates into high-profitability for investors. Kilde uses data science to identify the best BNPL companies in Southeast Asia and transform their loans into investable assets in the form of private bonds with a fixed maturity and return.
Read the full article here.
If you'd like to learn more about BNPL, in our previous materials, we have already talked about the BNPL business model and how market participants make money from it.
About Kilde
KILDE is a regulated investment platform for alternatives. It operates as a two-sided platform helping investors to discover and buy securitised private investments and borrowers to get liquidity for their operation. Its main asset classes are private debt, venture debt, and recurring revenue financing. KILDE has partnered with leading non-banking consumer lending firms to give our investors safe and controlled access to consumer lending assets. Its advantage is vast accumulated data on consumer assets performance as well as scalable investment and securitisation technology platform.
To learn more about KILDE, visit the website at: https://www.kilde.sg/
