Post covid lockdowns the consumer pattern has drastically changed. Present-day consumers are more interested in buying experiences as compared to standalone products. These experiences can be, choosing an electric vehicle having features like gaming or going to a boutique hotel that limited access.
This trend has its negative and positive it brings more pricing power to the companies that provide such experiences but this also leaves more leverage in the present that reduces future purchasing power despite higher income.
Within the choice of products Buy Now Pay Later has been famous among Gen Z and credit cards are famous among millennials. Whereas the baby boomer generation who owns most of these corporations enjoys higher profits.
While the default rates of these products are under control and the economic environment is growing alone with sufficient employment such a trend is manageable overall.
But given sooner or later due to the increase of AI and other tools same or higher revenue would need a lower employee count. This might lead to higher joblessness over a period of time that might eventually result in a reset of the private lending business for many.