Retailers Embrace Embedded Finance Revolution to Enhance Customer Experience
- Retail credit market experiences record growth in Q1
- New business volumes reach £2.1bn in Q1, highest ever for this period
- Digital lending marketplace Freedom Finance reports fastest start to the year
- Consumer finance market expands by 20% in May 2022 compared to 2021
- Retail credit market growth mirrors wider consumer finance trend
- Embedded financial services becoming essential for retailers’ success
The retail credit market has experienced its fastest start to the year, reaching £2.1bn in Q1, according to the Finance and Leasing Association. This marks a 12% increase compared to the same period in 2021. The growth is mirrored across the wider consumer finance market, which expanded by 20% in May 2022, reaching £10.4bn. Digital lending marketplace Freedom Finance, which provides financial services to retail brands like Argos and ASDA, attributes this momentum to the increasing demand for flexible and diverse credit options. Michael Davidson, Chief Revenue Officer at Freedom Finance, believes that retailers must offer a variety of financial products, such as insurance, to maintain relevance in the evolving consumer credit landscape. Embedded finance services can improve customer experience and build trust and loyalty.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the growth of the retail store and online credit sector, citing specific figures and quotes from an industry expert. It also offers insightful analysis on the trend’s implications for retailers and consumer behavior.
Noise Level: 3
Noise Justification: The article provides relevant information about the growth of the retail store and online credit sector, citing specific figures and expert opinions. However, it could benefit from more context and analysis on the factors driving this growth and potential risks or challenges associated with increased borrowing.
Financial Relevance: Yes
Financial Markets Impacted: Retail store and online credit sector, consumer finance market
Financial Rating Justification: The article discusses the growth of retail store and online credit sector and its impact on consumer finance market, as well as the increasing demand for flexible financial products offered by retailers.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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