AMSTERDAM–(BUSINESS WIRE)–Marqeta (NASDAQ: MQ), the modern global card issuance platform, today released new data from a survey of European consumers on their attitudes and experiences with lending. The findings – part of Marqeta’s new report “Looking for Alternatives: How Consumers are Engaging in the Lending 3.0 Landscape” – show that many consumers are frustrated with the obsolescence of the lending industry, saying that a decade behind online banking. Consumers also want clarity, with 75% of respondents saying they “turn off” when potential lenders use industry jargon and 80% believe lenders try to hide the ultimate cost of a loan. This lack of clarity is often compounded by consumers’ experiences with loans, with 55% saying it takes too long for money to arrive once a loan has been accepted.
It is clear that many consumers are hungry for change. The pandemic appears to have caused a change in attitude towards alternative forms of lending, with 59% of consumers surveyed believing it has opened their eyes to alternative finance. Younger generations are particularly keen to explore alternative lending, with 71% of respondents aged 18-34 saying they have their eyes opened. The survey of 2,000 European consumers, conducted by Propeller Insights on behalf of Marqeta, found that although more consumers are aware of alternative finance, only 55% of respondents know what their options are if a loan is refuse. That’s a high number, especially with the cost of living crisis forcing many consumers to assess their finances. Asked about the different forms of financing, many consumers were unaware of the alternatives:
BNPL is the best understood alternative financing option, with 77.6% of respondents saying they have a good understanding of these services and 32% have used them
47% of consumers surveyed do not know what peer-to-peer lending is and only 15% have actually used it
Nearly half (45%) of consumers surveyed do not know what salary financing is
Anna Porra, Director of European Strategy at Marqeta, comments: “As the cost of living crisis continues and consumer confidence hits historic lows by some metrics, many will turn to loans as a source of assistance. But our survey shows that more education about alternative options is needed. Unless consumers understand the options available to them, they may struggle to access much-needed financing or be forced to consider more expensive options. With more than half of respondents saying it takes too long for money to arrive once a loan has been accepted, it is clear that more needs to be done to support those seeking finance, particularly the younger generation.
The survey showed that consumers are increasingly clear about what they want from the lending industry in the future, with 69% of respondents interested in real-time data alerts on how they spend their money. loan and 61% want real-time loan advice from them. vendor. Consumers would also like to have a more personal connection with lenders, with 67% of respondents wanting a relationship with their lender, rather than simply filling out an online form. The majority (53%) of consumers surveyed would go further and be interested in community loan options. 56% would also prefer to repay a loan to a lending community rather than a traditional lender. The majority (75%) are also interested in responsible lending options that will benefit their community, and in fact 54% would go so far as to pay a monthly fee for more ethical lending options. The appetite for being part of a lending community is also increasing among younger generations, reaching 67% for respondents aged 18-34.
When it comes to future technologies, research has shown that there is a real consumer appetite to explore emerging technologies such as cryptocurrency, NFTs and games to take out loans:
49% of consumers surveyed would take out or be willing to take out a cryptocurrency loan
69% of NFT owners surveyed would be willing to use their assets as collateral for a better loan
40% of respondents play games where tradable game assets can be purchased. And of those, 62% would be willing to use those assets as collateral for a better loan
Porra continues, “The writing is on the wall for traditional lenders. Consumers increasingly want and expect the levels of modernization and personalization they have grown accustomed to in other aspects of their lives. Buy Now Pay Later services such as Klarna have opened consumers up to modern forms of lending, and now is the time for the industry to show consumers more of what is possible. Our survey has shown that while lenders can educate customers and provide insight into alternative financing, there is a real appetite for innovation in lending. The younger generation in particular is showing a real interest in exploring emerging technologies, providing lenders with an opportunity to lead the crowd. »
You can access the full report here: https://www.marqeta.com/uk/lending-3-0-research
The results come from 2,000 responses to a survey of European consumers – 1,000 in the UK, 200 in France, Germany, Spain, Italy and the Nordics. The research was conducted by Propeller Insights and commissioned by Marqeta.
Marqeta’s modern card issuance platform enables its customers to create personalized and innovative payment cards. Marqeta’s platform, powered by open APIs, empowers its customers to create more configurable and flexible payment experiences, accelerating product development and democratizing access to card issuance technology. Its modern architecture provides instant access to a highly scalable, cloud-based payment infrastructure that allows customers to launch and manage their own card programs, issue cards, and authorize and settle transactions. Marqeta is headquartered in Oakland, California, and operates in 39 countries around the world. For more information visit www.marqeta.com, Twitter and LinkedIn.
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements expressed or implied by this press release include, but are not limit, quotes and statements relating to consumers’ borrowing and lending preferences; consumer attitudes towards alternative lending and digital payment products and services; and the future of alternative lending and borrowing. Actual results could differ materially from the expectations contained in such statements due to risks and uncertainties, including, but not limited to, the following: the uncertainty and unpredictability of consumer preferences regarding alternative loans , digital payments and banking products and services; the effect and uncertainties related to the global COVID-19 pandemic on the U.S. and global economies and demand for alternative lending, digital payments, and banking products and services; the uncertainties and direct and indirect effects of the significant military action against Ukraine launched by Russia, including threats of attacks against US financial institutions in retaliation against financial institutions for sanctions imposed against Russia; the risk that alternative lending, digital payments and banking products and services may not be able to attract and further grow their customer base; the risk that consumers may not see the benefits of alternative lending and digital banking and payment products and services; the risk that alternative digital lending and payment and banking products and services may not perform as intended; the risk that alternative lending, digital payments and banking products and services will not achieve expected market acceptance; and the risk that competition will reduce expected demand for alternative lending and digital banking and payment products and services. Detailed information about these risks and other factors that could affect Marqeta’s business, financial condition and results of operations are included in “Risk Factors” disclosed in Marqeta’s Quarterly Report on Form 10-Q. for the quarterly period ended March 31, 2022, as such risk factors may be updated from time to time in Marqeta’s periodic filings with the SEC, available at www.sec.gov and on Marqeta’s website at http://investors.marqeta.com. The forward-looking statements contained in this press release are based on information available to Marqeta as of the date hereof. Marqeta disclaims any obligation to update forward-looking statements, except as required by law.