Specialist analytics for banking & insurance · London → Bengaluru
Banking · Credit risk

BNPL under the FCA's perimeter: what regulated lenders should do now

Buy Now Pay Later finally enters the FCA's regulated perimeter. The credit-bureau, affordability and complaints implications are larger than the consultation made them sound.

BNPL is no longer the regulatory exception. With the 2026 perimeter change, providers are now squarely inside the consumer-credit regime — and the existing card and instalment lenders who share customers with them inherit a set of operational consequences that the consultation papers underplayed.

Three things that change for credit risk teams

  • Bureau visibility. BNPL balances and repayment performance flow into the bureaus. Thin-file customers suddenly have thicker files — and the credit decisions you made last quarter on the thin-file population were not calibrated against the new data signal.
  • Affordability methodology. If your affordability assessment did not previously incorporate BNPL commitments, your DTI and disposable-income calculations are stale across the cohort.
  • Forbearance correlation. When a customer hits stress, BNPL is often the first to roll. Treating it as a separate, low-priority obligation in your forbearance logic misreads the signal.

What good looks like

Pull the new bureau attributes into the scorecard development environment. Re-fit the application scorecards on the post-BNPL data. Decide explicitly whether you treat BNPL as a credit commitment or a payment instrument in affordability — and document the choice. Run the existing book through the new logic and quantify the population shift.

And then, separately: read your customer-facing comms for BNPL options. The FCA will. Fair-value, vulnerable-customer and arrears-treatment standards apply equally now whether the product was rebranded BNPL or instalment credit.

Get the next analysis first.

Subscribe to receive new regulatory and modelling briefings in your inbox.

Related

Continue reading