Trust and the future of consumer lending
Welcome to ‘Trust and the future of consumer lending’ a white paper by Frollo and EML on neo-lenders’ challenges with consumer trust and their unique position to capitalise on innovations in Open Banking, payments and personal finance management to win back that trust.
The white paper is packed with new consumer research, interviews with industry leaders from Latitude, humm and Plenti and existing research by Deloitte, Finder and others. It paints a comprehensive picture of the challenges and opportunities, and shows why neo-lenders are in such a great position to win the trust of consumers by using innovation to power their positive intentions.
Consumers want lenders to innovate and focus on financial wellbeing
The research shows that features powered by innovations in Open Banking, payments and personal finance management to build information, prudential and relationship trust are deemed very important by consumers.
- Income & Expense verification: The majority of younger people and almost half of all respondents (41%) are looking to share their financial information digitally to get an instant credit decision
- Instant access to funds: Getting instant access to funds via a virtual debit card is deemed very important a majority of younger people, with 61% of 18 – 34 year olds rating this of high importance
- Emergency buffer: The ability to draw on an emergency buffer by turning a debit into a loan that can be paid off in instalments is popular with more than 50% of the respondents below 50
- Personal Finance Management: Most respondents are looking for lenders to help them manage their money after they’ve taken out the loan. On average, 68% of all respondents rate this of high importance. 79% of 18 – 34 year olds find this very important
- Responsible lending: Consumers overwhelmingly value dealing with a lender who ensures you don’t take out a loan you can’t afford, and helps you pay it down after you’ve taken it out. 76% of all respondents rate this of high importance
Download the free white paper
Download the free report to find out more about the biggest challenges and opportunities to innovate and win consumer trust in lending.
Download the free report below.