Welcome to The Circuit series. Meet our next interviewee:
The credit market occupies an interesting position as both a necessary feature of a modern economy and an industry that can quickly become polarising and alienating if handled irresponsibly.
From the payday lending crisis that ruined lives with predatory loans to the extended debate over how more recent products should be regulated, the credit industry has had to face a lot of change over the years.
But despite its difficult reputation among consumers still facing major cost of living concerns, the industry’s leaders maintain that when done well, credit can be supportive, responsible and improve people’s lives.
In this exclusive interview with UKTN, Neil Kadagathur, co-founder and chief executive of Creditspring, discusses how the industry has changed in the decade since his company launched, where he would like to see it go, and the rise of one of credit’s newest products, Buy Now, Pay Later (BNPL).
How has the credit market changed since you launched Creditspring?
When we launched Creditspring in 2016, the industry was still dealing with the fallout from the payday lending crisis. There was a clear recognition that parts of the market had failed consumers and that trust needed to be rebuilt.
Since then, borrowing has become much more embedded in everyday life. Products like BNPL have made credit faster, simpler and more accessible, but they have also changed how people think about borrowing. Credit is increasingly presented as part of the everyday shopping experience rather than as an important financial decision in its own right.
Alongside that, we have seen much greater focus from regulators and the industry on customer outcomes, transparency and affordability. That’s a positive shift, because innovation works best when it gives consumers confidence in the products they are using. The opportunity now is to build a credit market that combines innovation with trust, transparency and better financial outcomes.
How do you view BNPL as a product?
BNPL has addressed a genuine consumer need. Giving people the ability to spread the cost of purchases can be incredibly useful, particularly when they are managing household budgets and unexpected expenses.
Like any form of credit, though, consumers need to understand exactly what they are signing up for, how repayments work and whether borrowing is affordable for them. That means clear information, meaningful affordability checks and protections that give people confidence they are using credit safely.
The conversation should not be about whether BNPL should exist. It has become a mainstream credit product. The focus now should be on making sure it operates within a framework that encourages responsible lending, informed borrowing and consistent consumer protections.
Are the recent new regulations for BNPL sufficient?
This is a step in the right direction, but there are still some important questions around implementation.
The biggest uncertainty is how proportionate affordability checks will work in practice. If firms interpret that differently, consumers could still end up receiving very different levels of protection depending on who they’re borrowing from.
There’s also the question of merchant-provided credit remaining outside the scope of the new rules. From a consumer’s perspective, credit is credit. Most people do not distinguish between different legal structures at the checkout – they simply expect the same standards and protections to apply.
Looking ahead, I would like this to be viewed as part of a broader programme of reform. Regulation is an important foundation, but building trust in credit also requires greater transparency, clearer communication and better financial education.
Where do you want to see the credit market go in the future?
I’d like to see a market where people feel confident using credit because they understand it. Our research shows there is still a significant financial literacy gap. Twelve million adults with credit products say they are not confident they understand APR, and only 11% could correctly calculate the total amount repayable on a £1,000 loan at 79.5% APR.
Innovation will continue to transform the market, but consumers need products that are transparent, predictable and easy to understand alongside it. Those things should go hand in hand.
Ultimately, I’d like to see a credit market built around trust, transparency and long-term financial resilience. The businesses that succeed over the next decade will be those that consistently put customer outcomes first.
What is an aspect of your industry that outsiders just don’t know about?
I think many people assume that access to credit is the biggest challenge. In reality, understanding credit is just as important.
Our research found that one in three people wrongly believed BNPL was already regulated before these recent changes came in, while more than half either misunderstood or were not sure whether it could affect their credit score. That tells us many consumers are making borrowing decisions without having the full picture.
Another misconception is that everyone who uses short-term credit is financially irresponsible. That’s simply not what we see. Most people borrow because life happens – an unexpected bill, a car repair or a temporary gap between paydays.
Responsible lending is about helping people navigate those moments safely, while giving them the information they need to make informed decisions and build long-term financial resilience.
