Around 70% of BNPL users would prefer to use BNPL from banks because trust is vital when choosing a lender. Now, banks must be prepared for the demand and overcome threats from fintech leaders.
How can banks be market-ready?
White-label services from third-party providers are becoming more and more popular.
When looking for a white-label platform, banks need to make sure the solution supports a variety of loan products to boost approval rates and scale rapidly. They should be able to begin to offer multi-product white-label solutions to a variety of customers, such as split payments in addition to point-of-sale (POS) installment loans and lines of credit.
This would help banks improve their overall consumer financing approval rates since split payments appeal to super-prime customers, leading to balanced application pools. As a result, this benefits the subprime market as the banks can offer them better access to financial products and approve more subprimes.
Read the full article by Yaacov Martin on Fintech Nexus News to learn how traditional financial institutions can benefit from a white-labeled BNPL solution.
