A survey conducted by Vodeno and Aion Bank has revealed 52% of 25-34-year-olds said using financial products and services from their favourite brands was their payment option of choice – and more convenient than using a conventional bank.
Another 51% of respondents said brands offer products more tailored to their needs than traditional institutions do, while 50% say their loyalty to brands is thanks to the financial benefits and incentives they offer, including Buy Now, Pay Later (BNPL) and cashback options.
Are brands now at the forefront of financial services?
The survey taken by Vodeno and Aion Bank covered 3,007 European consumers from the UK, Belgium, and Germany.
Some 25% of those surveyed cited convenience as the key reason for favouring brands as their preferred choice of payment. In addition, 35% of respondents in the same age bracket said they opted for embedded financial products offered by their favourite brands because they were offered at a good rate.
Some 37% of those surveyed say they are more likely to seek out brands offering BNPL products and other flexible payment options due to the current economic climate and cost-of-living crisis.
While 50% of respondents who are already customers of BNPL providers say they aim to stay loyal to these brands because they are offered such payment options.
When asked about how often they shop with their favourite brands, 19% of those surveyed said monthly, and a further 16% said they do so once every two weeks – chiefly because of the favourable payment options available.
Vodeno Chief Revenue Officer Kim Van Esbroeck says: “Millennials and Gen Z are charting a new financial course, and increasingly relying on embedded finance products from their favoured brands for their banking needs.
“Our survey paints a clear picture as to why: convenience, tailored solutions, and accessibility are the cornerstones driving this transformation.
“For brands, the case for embedded finance is clear. Not only can they offer their customer greater choice with different banking products, but in doing so they create a better customer experience with new revenue streams.”
Please also take a look at our upcoming virtual event, FinTech LIVE London, coming on 8-9 November 2023.
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