Brendan Deakin, GM, United States Kathy Stares, EVP, North America
Current banking/lending landscape: • We are seeing rising interest rates in an effort to reign in inflation, and with growing inflation, consumers’ purchasing power is being eroded, meaning they’re looking at credit options to provide flexibility. • We’ve seen a retraction in some segments like Buy Now Pay Later, which has been growing over the past four or five years. We still see strong demand for unsecured personal lending and auto lending is still strong. The credit card segment still appears to be fairly healthy, although delinquencies are up. How can financial institutions support their customers? • The entire industry has always had a focus on helping consumers with personal financial management, and personal financial health. FIs need to continue to emphasize that even when times get tough, they’re going to be there to help consumers and their business clients weather the storm. • FIs that can deliver products that allow their customers to live a financially healthy life, even when there may be bumps in the road, will reap the benefits associated with customer loyalty, product graduation and expansion. This will be especially relevant in the new to credit/immigrant populations, as well as the sub-prime segment, all of which have traditionally been poorly served by this industry. New innovations and lending products from fintechs/ banks: • There a growing area of innovation around employer-based lending, where companies can extend credit indirectly as an added benefit to a company’s employees and helping those employees gain better cash flow.
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