It’s time for lenders to ‘disrupt the disruptors’ and get ahead in retail finance
In recent months, buy-now-pay-later (BNPL) disruptors have received significant valuations, leaving us in no doubt that the retail finance sector is on a rapid-growth trajectory, with great expectation.
For years, these fintech trailblazers have disrupted the market and not only generated a new and popular payment method, with a lucrative revenue stream, but also snatched profit margins from traditional lenders, as credit card payments have been steadily eroded, globally.
But could the status quo be poised for change? In recent weeks, news headlines have been shaking the foundations of these new market entrants as talk of regulating BNPL circulates the globe, challenging the integrity and ethical values of the products on offer. And as doubt is cast, trust is eroded; for retailers and consumers alike.
Operating with established and trusted brands, that retailers and consumers know and feel comfortable with, traditional lenders can demonstrate integrity and compliance far beyond what the disruptors can offer, giving them a clear advantage at this point in the race.
All of this uncertainty has opened up the opportunity for traditional lenders to jump ahead. Operating with established and trusted brands, that retailers and consumers know and feel comfortable with, they can demonstrate integrity and compliance far beyond what the disruptors can offer, giving them a clear advantage at this point in the race.
Further, these concerns serve to remind retailers how important it is to maintain control of their own brand, whilst only partnering with brands they implicitly trust, to avoid unnecessary reputational damage.
So, whilst valuation-bubbles burgeon, traditional lenders must look beyond the dazzle and see the very real opportunity to make retail finance their priority for 2021. It’s time to disrupt the disruptors.
Learn more about why now is the time for traditional lenders to back retail finance.
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