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BNPL Risks

BNPL – Risky Bet?

The Buy Now Pay Later (BNPL) model is a popular payment plan for small holiday purchases, such as furniture, appliances, electronics, and sporting goods. To earn this plan’s benefits, the seller must offer the product for sale on their website during a specified period. Sometimes during this time period, consumers are required to make a down-payment or otherwise deposit funds into an account held by the seller. When the purchase date arrives, the consumer pays only a partial amount and is then responsible for the balance upon delivery of the product. While this type of payment plan often sounds as if it would offer greater protection to consumers, what risks do lenders face when they offer this type of financing?

Risk associated with BNPL

Potential risks from the business perspective include:

Declining sales

When the seller has set a specific start date for their “sale,” customers are probably less likely than usual to purchase on that day. Because customers are influenced by the start date, this may also discourage them from purchasing in the future.

Creditors not receiving payment

BNPL agreements place consumers in a position of financial responsibility for products they have purchased before they have received them. For some consumers, this is a result they could have expected and planned for. However, others may be surprised to find that the only source of funds available to repay their loan is the sale of their product, resulting in payment delays or non-payment altogether.

Consumer awareness

BNPL agreements are typically communicated through the seller’s website and on their sales flyer. While many consumers read such materials, others may not realize that they are creating an obligation to purchase an item of value. Therefore, consumers who do not comply with the agreement must be given additional information by the lender, which can also lower the success rate of BNPL financing.

Some companies that offer to buy now pay later services include BuyEasy.com,  BuyLater.com , ZippyPay.com.

 

Why it is risky to buy using BNPL?

The decision to buy now and pay later is indeed a risky business. With sites like Rent-to-Own, which will allow you to purchase items with the option to pay in installments with no credit check, you can get things you can’t afford just yet with little or no hassle. But is this really wise?

There are many risks involved in these types of transactions. One of the most obvious is the interest rate; it will be much higher than if you could get a credit card or bank loan.

This is especially true if you have low credit and lack the ability to qualify for a traditional loan. This can prove very costly, especially if the item is something you really need or if it’s a very expensive item.

But there are other issues as well, and they are often not so obvious. For example, let’s say you’re trying to buy a car. You’d like to purchase one that has only four thousand miles on it, but you budget only three grand for the car. You’d happily pay three grand for the car (with a $200 warranty) but the dealer won’t let you drive out of the lot until you’ve paid five grand.

How much of a deal is this? You’re going to be paying way more in interest than if you had done something else that was much simpler and less risky.

The problem with these kinds of deals is that they often have hidden fees and conditions that will probably come back to bite the buyer.

If this is how you have to buy things, then you need to make sure that you are aware of your rights and how these types of deals work. You’ve heard the classic expression “Buyer Beware”; well it’s certainly true for buying now and paying later.

Paying over time reduces the risk of buyer’s remorse. If you are thinking about buying something, you may fall in love with it, but then change your mind when you actually have it at home.

This may only work if you’re not buying items that have a high resale value, so it doesn’t work for buying stuff like furniture or electronics.

If you’re paying for things over time and then end up going into debt, then it may be a good idea to cancel the payments and refocus on paying down the balance.

 

Summary

Many people who use buy now, pay later don’t actually have a big problem with debt and are using it as a way to save money. They certainly may not be putting their finances at risk, but that doesn’t stop them from being wrong about the concept.

Book Review

When I read the following message in my LinkedIn Inbox on Monday morning regarding my book, it literally made my (Mon) day 🤩 and a week. It was candid feedback 😊 from Y Gopi Rajendra about my book.

All people who have read the book have given positive feedback. That really gives me a good sense of satisfaction and accomplishment. When the book is sold with no marketing, you really feel good. The icing on the cake is when you receive such feedback, including several 5-star reviews on Amazon.

I wanted to say a special thanks 🙏to you people in my network, like Gopi, who took the time to write back to me to give candid feedback. I appreciate your time and efforts in writing me a few sentences.

All Project management professionals, aspiring and novice PMs, students, startup founders, leaders, and even team members – this book will give practical insights about how to handle daily project management and leadership in your sphere of work. I am sure you will not regret reading lessons from my decade of experience in project management.

And yes, I would also like to know what else you could have liked to see in a similar book.

My book – “Supercharge Your Project Management skills” is available on Amazon India at – https://tinyurl.com/mr46pau6, Amazon US at – https://tinyurl.com/wcb8apm8, Amazon UK at – https://tinyurl.com/ycxy99ku

With a good number of 5🌟reviews on Amazon, I am sure this book is going to help all project managers.

Calculating insurance requirement

Recently, my colleague asked me how much insurance cover was good enough for him and his family. His agent was recommending exorbitant insurance cover to him and he was worried that whether that recommendation was correct or not. That’s when I thought that there should be a kind of scientific method to arrive at the required insurance cover for an individual. And this is what I found.
  Read More…

Can you Run?

The obvious answer is yes. But the follow up question to ask yourself is – how much? I asked the same question to myself a couple of years back and I didn’t realize that I had strength to run forty two kilometers at a stretch. Sounds impossible, Isn’t it??? Yeah, it looked to me as well at one point of time.

So, how do you think this is possible? Read my story. Read More…

ChangeMaker V/s Project Manager

BE THE CHANGE YOU WANT TO SEE IN THE WORLD

 

A project is a synonym for change. Project management executes the vision and mission of a change into reality by a project manager. However, there is a need to shift the parochial paradigm from managing and leading the change to making and owning the change.

 

The next gen project manager doesn’t just manage change and wishes for change. They take ownership and accountability to make the change happen. Using their knowledge, resources, and determination, they push through the resistance and drive the change. They may not possess all the skills needed, but they know best how to use their resources within the constraints. They are the ones who connect the dots, unearth the blind spots and influence the outcomes through cogent focus and commitment. They are determined. They transform their circle of influence. They are the Changemakers.

 

In today’s fast-paced world, most mediocre project managers are engrossed in following processes and systems. They do not think out of the box. Without a holistic approach to optimize current structure and systems, they fail to achieve their outcomes efficiently. They are more focused on ticking all the boxes, indulging in the quick GTM strategy.

 

In contrast, the Changemakers, armed with their design thinking mindset, focus not only on improving the customer experience but on overcoming resistance from all corners. With their firm beliefs and passion in stride, those people-oriented Changemakers are thoughtful, compassionate, and full of empathy. Changemakers are those people with humility and integrity who not only use their skills, expertise, and authority to bring positive change, but also to set new trends. Who doesn’t know of revolutionary changemakers like Mahatma Gandhi or Dr. Martin Luther King?

 

 

The Changemakers use their collaborative nature, expertise, and authority in a way that brings positive social change and affirms the humanity of stakeholders. Changemakers have the freedom, confidence, and societal support to address any problem and drive change. Table 1 illustrates the difference between mediocre project managers and Changemakers.

 

Changemakers focus on lean changes at a time which can lead to a monumental transformation or WoW (Ways of Working) revolution over time. Their primary focus is the MVC (minimum viable changes), ensuring that teams stick to changes that worked and discard those that didn’t. They ensure these changes happen gradually, not suddenly, and out of nowhere. Changemakers weigh the cost of a change and prioritize changes by considering which of them would have the larger impact in a shorter time, thus implementing it in “thin slices” that work for stakeholders. They also assess how well changes work in practicality, applying that experience for future changes.

 

Changemakers unconsciously follow the Agile manifestos: responding to change over following a plan and harnessing it for the customer’s competitive advantage. They make the journey cherishable, relatable, and memorable for the people they work with. Changemakers rewire the brain to change the de facto response.

 

The Changemaker focuses on changing culture by revamping and fixing the system. They come out of their comfort zone and move towards the learning zone, ultimately breaking into the growth zone. They are the next-gen leaders; they are the ground breakers; they are the social drivers; they are the social entrepreneurs. They are reinventing WoW. They are not only the game influencer and the game player but also the game-changer. They are the Changemakers.

 

 

It’s time for project managers to upskill and upgrade themselves. Think differently, change the game, and make the change!

 

 

Colgate Ad

In one of WhatsApp groups, I read the message that an actor was required in the age group of 40-50years. Since I am partly bald, I thought why not to call the given number. So, I called the given number and they asked me if I could quickly send some pictures and a profile video. Without waiting, I dropped some of my images and shot a video using my mobile.

Hurray!!! I was told that this is for a Colgate ad being shot by Equinox Films. I was asked to come for the costume trial on 2nd March. I was wondering whether I will be selected or not.  So, I asked the person again and I got an affirmative response. I was shocked on hearing this.

I got a call from the costume team and I was asked to bring certain clothes. I happily carried some with me. And they selected some from the clothes I was carrying. Then we were taken to the director, who briefed us about the role play. It was quite exciting to know all this.

I was picked up the next day i.e. 3rd March, Sunday morning along with the other actors who were to participate. The set was located at the Forbes building in Kala Ghoda. Although I was shooting for an ad for the first time, they treated me nicely.

We were told that the shooting is going to take place in two languages-Hindi and Tamil. The different scenes and retakes kept on going the whole day. The director, Sandeep Modi was amazing and the way he kept directing the shoot was praise-worthy.

After a long wait, the advertisement finally got released in first week of May. It was a proud moment for me and for my family. Although I only appeared for a second or so, it felt great to see myself on TV. Hopefully, the ad appearing in the cinemas will be slightly longer and I will have some more screen time.

​I am looking forward for an alternate career.

Commercial Excellence Award

In August 2018, I got the award in my company – Intellect Design Arena for one project in my portfolio. The project was about the upgrade in the Tier-1 prestigious bank. Since this was the first upgrade project of its kind, the expectation was that once it goes live, it will have some critical & serious issues. However, it was so smooth that some competitor banks were wondering whether upgrade really took place !!!

Yes, that was a reason behind getting the award. It was Commercial Excellence award for 2018. It set the tone for what to expect from me in future & also set high benchmark in the company. Thanks to the project team who made it possible. ​

Connected cars

Connected Cars & Car Dashboard

Recently, one article about car dashboard caught my attention. I read full article. I was amused to know that car dashboard will be one of the major digital platform revenue drivers for car & communication companies and the revenues from connected car services are expected to touch around $152 billion in next 5 years i.e. by 2020.When I read the number of $152 billion, I was really taken aback by surprise! What I discovered was that the primary business of car dashboard will come from connected cars.
Read More…

Conscious Leadership

Leading with Awareness: The Power of Conscious Leadership

In today’s complex and dynamic world, leadership styles are undergoing a significant shift. Traditional models focused on command and control are giving way to a more mindful approach – conscious leadership. This style emphasizes self-awareness, emotional intelligence, and fostering a collaborative environment where all voices are heard.

 

What is Conscious Leadership?

Conscious leadership is a practice that transcends simply giving orders and achieving results. It delves into the leader’s inner world, cultivating a deep understanding of their values, motivations, and potential biases. This self-awareness allows them to build genuine connections with others, fostering trust and psychological safety within the team.

 

Key Principles of Conscious Leadership:

  • Self-Awareness: Conscious leaders understand their strengths, weaknesses, and emotional triggers. They are committed to continuous learning and growth, both personally and professionally.
  • Emotional Intelligence: They can effectively manage their own emotions and those of others. This includes empathy, compassion, and the ability to navigate conflict constructively.
  • Purpose-Driven: Conscious leaders have a clear sense of purpose that extends beyond profit margins. They inspire their teams by aligning their work with a cause that matters.
  • Empowerment: They believe in the potential of their team members and empower them to take ownership, make decisions, and contribute their unique talents.
  • Open Communication: Conscious leaders create a space for open and honest communication. They actively listen to diverse perspectives and encourage feedback.
  • Authenticity: They lead with authenticity, being true to their values and expressing themselves openly. This fosters trust and strengthens relationships with team members.

 

Benefits of Conscious Leadership:

The impact of conscious leadership extends far beyond individual leaders. Organizations that embrace this approach experience a multitude of benefits:

  • Increased Employee Engagement: Employees feel valued, heard, and empowered, leading to higher engagement and motivation.
  • Enhanced Creativity and Innovation: A collaborative environment fosters creativity and out-of-the-box thinking.
  • Improved Decision-Making: Leaders with high emotional intelligence can make more informed and well-rounded decisions.
  • Stronger Company Culture: Conscious leadership creates a culture of trust, respect, and psychological safety.
  • Sustainable Growth: By focusing on purpose and long-term impact, conscious leaders create organizations that are built to last.

 

Developing Your Conscious Leadership Skills:

The journey towards conscious leadership is a continuous process. Here are some ways to cultivate this leadership style:

  • Practice Self-Reflection: Take time to reflect on your values, motivations, and leadership style. Consider journaling or meditation to gain deeper insights.
  • Seek Feedback: Actively seek constructive feedback from colleagues, mentors, and even subordinates. Use this feedback to identify areas for improvement.
  • Develop Emotional Intelligence: Enhance your ability to understand and manage your own emotions, as well as those of others.
  • Embrace Lifelong Learning: Cultivate a growth mindset and commit to continuous learning and development. Read books on leadership, attend workshops, and seek out mentors.
  • Lead with Purpose: Connect your work to a larger cause or mission that inspires you and your team.

 

Conscious Leadership: Leading the Way to a Better Future

In conclusion, conscious leadership is a powerful approach that benefits both individuals and organizations. By focusing on self-awareness, emotional intelligence, and fostering a collaborative environment, conscious leaders create a more fulfilling workplace and pave the way for a more sustainable and positive future. As the world continues to evolve, conscious leadership has the potential to become the cornerstone of successful organizations everywhere.

#leadership #empathy #empowerement #consciousleadership

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Biren Parekh