About the report
We asked 700 world leaders in lending and point-of-sale finance across the US, UK, Spain, Germany, France, Italy, and Nordics, for their key challenges and found four themes:
The lending market is highly diverse, with many lenders offering an assortment of options, including point-of-purchase finance.
In-line with a more diverse offering, lenders are seeing the pitfalls of customer acquisition, including major profit drains that occur when customers leave after an introductory rate has passed.
Point-of-purchase loans represent a $100m+ opportunity for lenders in the next 12 months, but many are struggling to refine aspects of their offering.
Many lenders feel their main problem is finding enough customers that meet their lending criteria, championing the need for A/B testing on risk levels.
IT and innovation is seen as highly important by financial services, with two thirds of lenders planning to invest between $1-500m in the next 12 months.
However, in-house R&D regularly takes longer than planned and runs over budget.
Collaboration between banks or lenders and fintechs is being embraced in light of the impact of new entrants and regulatory pressures.
Lenders expressed the ability to offer more services to more markets as a main attraction to working with fintechs, with half favouring a white label offering.