More than half of consumers willing to invest in alternative financial products
Embedded finance provider Additiv has revealed that two thirds of consumers would take investment services from non-financial service providers.
The findings come from a survey, which made up part of Additiv’s report: Understanding the Embedded Finance Opportunity – Consumer study 2022, published today.
The survey of more than 3,500 consumers, across multiple countries and demographics, found that consumers are quite open to alternative financial products.
More than half of consumers would consider switching from a bank or other traditional financial services provider to a non-financial brand channel if they provided more innovative services, for example.
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Meanwhile, 70 per cent of consumers would like to use cashback and loyalty points to invest and almost three quarters would be prepared to switch payment methods in return for rewards.
More than half of consumers would like to remove complexity by bundling together services into a single monthly subscription (such as digital subscriptions, tax-free savings and investments schemes, and different insurance products).
More than two thirds of consumers are interested in putting aside money into online savings pots for different goals (from an organization other than a bank).
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Take-up and satisfaction with online trading and investment platforms is already high, at 34 per cent and 63 per cent, respectively.
“The key takeaways from our survey provide essential data and considerations to enable any brand (financial or non-financial) to improve customer engagement and/ or build an embedded finance business case”, said Additiv head of strategy Christine Schmid.
“[The report] underlines the extent of the opportunity for brands willing to go beyond transactional banking and move into relational financial services such as mortgages and wealth management. The survey results indicate that there is an unmet demand for these relational financial services and that consumers have a propensity to take services overall from non-financial services channels.”
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