Banks and BNPL: Lead, Follow or Get Out of the Way?

2:00PM - 2:30PM EST
MAR

02

Many bankers are uncertain how to respond to the explosion of merchant and consumer demand for BNPL. In this webinar, we share insights from our recent consumer research, shedding light on how attractive BNPL users can be from the perspective of loan growth, revenue potential and credit quality, and showing how consumer willingness to trade price for convenience creates a rare double opportunity for margin and volume upside.

Additionally, we will offer a thoughtful approach on how to act on this opportunity, taking into account: risk, borrower behaviors, interest rate sensitivities, profitability, and the value of financing in the shopping experience.

Our five key take-aways:

1.BNPL users typically have strong credit scores, and are actually more likely to be employed and high earners than credit seekers who have never used BNPL loans.

2.BNPL users are more likely to seek credit in 2022 compared to those who have never used BNPL loans.

3.BNPL users are not sensitive to price - ~60% of those surveyed were willing to pay an APR of 33% or more.

4.A great customer experience is important to BNPL users and requires responsiveness to customer preferences and drivers of value

5.Bank credit parameters and merchant selection and development strategy must be aligned to secure market access to high potential underwrite-able customers
 
 

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