DIGITAL PAYMENTS
“ A blurred line between financial services and nonfinancial platforms might make it harder for consumers to differentiate or choose between legitimate services and potentially predatory ones ”
MIKE SMITH BANKING AND FINANCE EXPERT
embedded into consumer sales journeys or small and midsized business operations . Many of these non-traditional players , especially from the technology industry , are upending conventions about how to determine who gets credit , by drawing on data rather than credit reports . They ’ re also offering clear value to customers and helping them grow .”
The consultancy group believes that banks will need to do more than simply launch copycat versions of buy-now-paylater ( BNPL ) products in order to survive , and fend off plucky newcomers . This is particularly true , as lending products are some of the most profitable lines of business for banks and financial institutions .
Until now , there has been a misconception that regulatory hurdles and concerns around risk would be enough to put off new players , but trailblazing examples from the worlds of big tech and retail have already shown that non-finance brands can compete toeto-toe with legacy institutions – and they must either learn to adapt , or risk losing market share .
Economic headwinds waning , but consumers still struggling With concerns about the state of the economy continuing , embedded lending
76 November 2023