Digital disruption continues to force transformation across every sector. For the financial industry, fintech has become a point of focus that eyeballs cannot swivel from for an instant. And one particular fintech story has shown itself to be the standout headliner over the past twelve months: retail finance.
Consumer behaviours have changed. Demand for more choice at the point of sale has rapidly increased and this demand has seen the size of the retail finance market, valued at $1.2 trillion in 2017, leap to a predicted $2.5 trillion, next year. In parallel, valuations of the fintech disruptors have boomed, as many traditional banks have been left in their wake.
The Covid-19 pandemic has seen many consumers look to hold onto their cash for added security as retail finance often offered interest-free instalment options. In the UK alone, the uptake of buy-now-pay-later (BNPL) tripled as people bought electronic goods, invested in healthcare and shopped for home furnishings – the three highest-grossing sectors during lockdown periods.