A new consumer study shatters perceptions about Millennials and Generation Z consumers when it comes to their preferences and eligibility around innovative financing products. They are, in fact, high-quality credit users and are more inclined to use a buy now pay later (BNPL) solution from their preferred financial institution, according to research commissioned by financial technology firm Amount.
Survey results from the study show that Millennials and Gen Z BNPL users are highly educated homeowners with strong credit ratings. As household incomes increase so, too, does interest in BNPL. The data suggests banks should be building relationships with these groups because of their attractive financial profiles and strong credit histories.
"As our research shows, the preference for BNPL among these younger, financially savvy generations opens up prime opportunities for banks seeking to acquire a significant share of a new and growing value pool of customers,” said Adam Hughes, CEO of Amount. “By educating consumers on BNPL and tailoring more BNPL offerings to customers, financial institutions can build and maintain many long-term, high-value customer relationships for years to come.”
The report, “Buy Now, Pay Later: Today’s Greatest Customer Acquisition Opportunities for Banks,” also reveals that consumers in these demographic segments would prefer to use BNPL from their own bank, if it were offered. BNPL has become an increasingly popular payment method and can be a gateway to enhanced customer relationships.
Highlights from the research include:
- Nearly 60% of all respondents would prefer a bank-backed BNPL offering
- 70% of respondents have an “Excellent” or “Good” credit rating
- Those earning $100K or more have the greatest interest in BNPL (87%) vs those in lower income brackets
- Almost 70% have a college degree or higher
- 60% are homeowners
This study was conducted by research firm Advertiser Perceptions on behalf of Amount. Advertiser Perceptions surveyed 501 U.S. consumers in October 2021. The research focused on customers ages 18-44 who have used BNPL solutions in the past 12 months or were planning to use them in the next six months. To view the research findings in their entirety, download Buy Now, Pay Later: Today’s Greatest Customer Acquisition Opportunities for Banks.
Amount helps financial institutions make banking simpler, safer and more convenient with a full suite of end-to-end omnichannel consumer, small business and BNPL solutions. Developed by lending industry experts, Amount’s fully integrated and flexible platform is underpinned by enterprise bank-grade infrastructure and compliance, enabling banks to securely power new and differentiated offerings within months — not years. With Amount, banks can optimize performance across product categories while tapping into various service offerings including customer acquisition, funnel and performance assessments, and risk analytics. Amount clients include financial institutions collectively managing just over $3.1T in US assets and servicing more than 50 million U.S. customers.