Buy Now Default Later
We often celebrate disruption like it’s always a good thing. But after diving into the rise of tech giants and fintech startups, I’ve come to see another side—one that reveals a growing list of unintended consequences, regulatory gaps, and risks that could hurt average consumers more than help.
1. Algorithms Are Reshaping Our Lives—Sometimes Overnight
Think about how different industries have changed almost overnight: music, movies, dating, food delivery, even conspiracy theories. What’s the common denominator? Platform algorithms. These codes decide what we see, buy, click, and consume. Seven of the world’s ten most valuable companies didn’t even exist a few decades ago, and they got there by rewriting the rules—sometimes by ignoring them altogether.
2. Some Industries Aren’t Meant to Be Disrupted So Fast
Silicon Valley loves to “move fast and break things.” But banking, healthcare, real estate, and mental health aren’t as simple as launching an app. These are complex, highly regulated sectors for a reason. Disruption in these areas can’t just be about speed—it requires careful planning and thoughtful oversight, because mistakes can cost lives, not just market share.
3. How Tech Startups Break Through—And Break Rules
Want to know the recipe for a billion-dollar tech company? Find a slow, inefficient industry. Then build software that cuts out red tape and simplifies the experience—usually at the expense of the traditional system. Uber did this with taxi regulations. Airbnb did it with hotel licensing. Apps like Cash App and Robinhood are now doing it with finance. The model works—but it’s not always ethical, and it’s not always safe.
4. The Problem with Skipping Regulations
When Uber and Airbnb bypassed regulations, they grew fast—but they also sparked lawsuits and backlash. Fintech companies are playing the same game, but with your money. Case in point: Yotta Bank. Thousands of users lost access to their money after Yotta’s backend provider, Synapse, collapsed. No one could trace where the funds went, and regulators were slow to respond. That’s what happens when companies scale faster than the law can keep up.
5. BNPL Is the New Debt Trap
Buy Now, Pay Later (BNPL) services like Klarna, Affirm, and Afterpay are marketed as budgeting tools—but they can quickly turn into a debt spiral. People are using BNPL to pay off credit cards, then using credit cards to pay off BNPL. That’s loan stacking, and it’s dangerous. These companies charge merchants—not you—so they seem free, but it’s all propped up by investor cash. If that dries up, the fees will come for you. And without strong regulation, there’s nothing stopping it.
6. Why Financial Regulations Exist—and Why They Matter
Regulations aren’t there to annoy us—they exist to prevent the kind of collapses we’ve seen over and over again. They’re complicated, yes. But they protect consumers, stop money laundering, and ensure financial stability. Fintechs often find ways around these rules. That’s how they grow fast—but it also puts users at risk. We’re seeing the consequences now as more unregulated startups fold under pressure.
7. Disruption Without Guardrails Is a Risk to All of Us
When disruption hits regulated industries like healthcare, it’s not just about efficiency—it’s about lives. The same applies to finance. When new companies gain too much market share without oversight, they create monopolies. The irony? These “anti-establishment” disruptors often become the establishment themselves. Big Tech and Big Finance are more consolidated than ever, and consumers end up with fewer choices—and more risk.
I’m all for innovation. But we need to stop worshipping disruption and start asking better questions. Who does this benefit? Who might get hurt? And what’s the real cost of moving too fast?
All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.
