0 £0.00
This item was added to your basket
Credit Strategy homepage
LinkedIn
Twitter

Dear visitor,
You are viewing 1 of your 1 free articles


We’ve invested in our content to provide more news, analysis, features, interviews and opinions across a wide range of Credit and Financial Services. Register now to access more of the trustworthy, insightful information that’s on offer.

Register now or Login

A third of UK consumers would consider a loan from Amazon

UK borrowers are increasingly favourable to taking loans from Google, Amazon and Apple, with more than a third interested in borrowing from Jeff Bezos’ company.

Share on LinkedInShare on TwittereCard

The joint report by Equiniti Credit Services and Credit Kudos found that, although banks remained the lender of choice in 2019, 64 percent of UK consumers would be likely to consider a loan from a non-traditional brand, if it was well-known and had a good reputation. Loans from Google and Apple, for example, would be chosen by 26 percent and 21 percent of those surveyed, and Amazon by 34 percent.

 

The survey, conducted by ResearchBods, questioned 2,000 people in the year’s survey. Around 51 percent were women, and 49 percent were men. The age demographics analysed included 26 percent millennials (18–34), 35 percent, generation X (35–54) and 39 percent were baby boomers (55 and over).

 

“Consumers still consider a low interest rate to be the key factor when choosing a loan product,” says Sarah Jackson, managing director for sales at Equiniti Digital. “Interestingly, however, brand reputation was cited by one in four as the most important factor overall, overtaking low weekly or monthly repayments for the first time. That doesn’t mean people are loyal to any one brand, however. Only 14 percent said they would return to a lender they’d used in the past.”

 

As a result, lenders must focus on meeting customers’ digital expectations, Jackson added.

 

She said: “As technology continues to drive convergence across sectors, borrowers are rightly expecting a digital-grade service experience from their loan provider. While banks continue to play catch-up, there is a big opportunity for the tech-enabled brands that are known for delivering exceptional user experiences to make a play in consumer credit.”

 

The report also found that that consumer perception of open banking is moving beyond concept stage, presenting lenders with potential opportunities.

 

“Consumers are becoming increasingly aware of the benefits offered by open banking,” said Freddy Kelly, chief executive of credit reference agency, Credit Kudos. “Demand for personalisation and instant, consumer-centric digital services was evident in the report, with consumers becoming increasingly receptive to how their data could be translated into more personalised services, presenting a real opportunity for lenders.”

Share on LinkedInShare on TwittereCard
Add New Comment
You must be logged in to comment. Login or Register to access enhanced features of the website.

GET THE LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

Upcoming events


Credit Summit


Credit Awards


FSE Week

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group