Point of Sale Lending

Six Major Trends in Lending for Financial Marketers this Year

The forecast for most forms of consumer credit is good. Lending volume, growth in balances, and overall performance look upbeat for the year ahead. Banks and credit unions will try new marketing strategies, explore new products, and experiment with new technologies. Over the next six-weeks, we’ll review major trends in consumer lending that financial marketers should watch closely.

#5 Point of Sale Lending

Building a marketing plan for digital lending has multiple facets. One early decision that Martin says lenders must make is who their ideal personal loan candidate is. Another key aspect is building repeat customer business. For that, attention must be paid to the post-approval digital experience.

According to Martin, another wrinkle is that traditional lenders are exploring ways to put their products right at the point of sale, embedding them in some fashion with the purchasing process. A model being looked at is that of Affirm, which makes installment loans for purchases at the digital point of sale. (Affirm works with fintech ally Cross River Bank, which books the loans.)

Martin says additional firms have started up in this space. One is Bread, which also works with Cross River Bank. Another is GreenSky Credit, a fintech which specializes in point of sale home improvement and healthcare finance, among other needs, in partnership with multiple banks.

“Co-branded deals like that are hot,” says Martin.

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