New Report Shows Customers Prefer Brands Who Offer Embedded Finance Products
July 19, 2023
It is plain to see that the cost of living is rising across the globe, prompting customers to adapt to these uncertain times. In the UK, consumers are responding to it by keeping a close eye on their spending. New research by Vodeno and Aion Bank suggests that because of this, the adoption rates of embedded finance are increasing.
The research revealed that 37% of correspondents actively seek out brands that use embedded banking products and flexible payment options such as Buy now, pay later (BNPL). This percentage is higher in the 25 to 24 years demographic, at 50%.
44% of consumers revealed their loyalty lies with the brands that offer competitive prices, and 43% said a good selection of products is most important.
In addition to this, 40% of consumers admitted they would only stay loyal to brands that offer options such as BNPL or cashback. And 46% said they feel more inclined to use a company’s loyalty card to make purchases if it includes BNPL. Age affects this number, as the number rises when it comes to younger consumers, at 53% 16 to 24 demographic and 65% in the 25 to 34 age group.
These results show that having embedded finance in a company’s website is actively making a difference with customer loyalty. In this fast-paced environment, those brands that include embedded finance will find they have an advantage over the rest of competitors.
Furthermore, correspondents revealed they are more likely to return to an app or webpage if they had tried their embedded banking once already. Of these, 36% said they return three to five times a month. 19% of all respondents said they shop with their favorite brands monthly, and 16% said they do so every two to three weeks.
We cannot ignore the benefits of embedded banking. Our research offers strong evidence that consumers are not only using these products, but it is also positively influencing their loyalty to BaaS-enabled brands.
Consumers will continue to look for products that are both good and affordable moving on, to ensure the wallet goes a long way.
Those brands who wish to find continued support amongst consumers, especially young ones, must adapt with the times and offer flexible payment options as well as a good, varied selection of products.
Want to learn more? Check out The Fintech Times’ full write-up here.
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