Following the end of Australian government's benefits to reduce unemployment at some time in H2 2020, there will be higher unemployment and lower incomes overall.
The result of this is that the Australian public will use small loans to get by week to week especially when work availability becomes volatile. Certain types of businesses including those in the hospitality sector will close forcing casual workers to rely on Government unemployment benefits until meaningful employment can be found. Assuming that these benefits return to the levels seen pre COVID-19 (~ AUD$20 a day), many Australians will need flexible loans to maintain themselves.
Some of the loan providers making noise are:
I'll be closely watching these; especially ZIP Pay due to its recent venture into the United States, a country that will see these issues magnified due to the lower number of government benefits available.
The result of this is that the Australian public will use small loans to get by week to week especially when work availability becomes volatile. Certain types of businesses including those in the hospitality sector will close forcing casual workers to rely on Government unemployment benefits until meaningful employment can be found. Assuming that these benefits return to the levels seen pre COVID-19 (~ AUD$20 a day), many Australians will need flexible loans to maintain themselves.
Some of the loan providers making noise are:
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ZIP
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ASX:APT
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ASX:OPY
I'll be closely watching these; especially ZIP Pay due to its recent venture into the United States, a country that will see these issues magnified due to the lower number of government benefits available.
