Reinvigorating the Market for Personal Credit
Financial institutions and credit providers face a consumer marketplace for personal credit that is increasingly complex in terms of product choices, channel technology, new competitors, and the impacts of the COVID-19 pandemic. Traditional lenders must assess the strategies, tactics, and positioning of their product lines—credit cards, automobile loans, personal loans, and lines of credit.
The technological environment is a “brave new world” in which many consumers can conceivably walk into a store, select an item for purchase, and then apply for and receive credit via their mobile phone while waiting in the checkout line. Savvy consumers today are well armed in terms of the information and tools available to them for evaluating credit products and providers—as well as the ease of considering alternative sources of credit if they feel traditional lenders are not meeting their needs.
New and innovative competitors could potentially reshape the market for personal credit. Peer-to-peer (P2P) lending continues to gain ground as a source of credit that may present an easier process than dealing with traditional financial institutions. Fintech platforms, on which a consumer’s credit qualifications can be quickly evaluated with the input of minimal personal information, are poised to be significant disrupters of the personal credit space. Credit players—both traditional and alternative—must prepare to compete in a dynamic environment for personal consumer credit.
This study examines consumers’ perceptions of and experiences with various of personal credit products and services.
National survey –The survey will include 2,000 online interviews with consumers ages 18 and older.
Clients will have the opportunity to review the questionnaire and provide comments. The cut-off date for client input is July 2, 2020.