the future of retail consumer financing -...
TRANSCRIPT
The Future of Retail Consumer Financing June 28th, 2016
DougFilakVyzeCMO@DFilak
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Twi2er@vyzeinc
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Agenda
Technology and financing considerations
Retail customer landscape & where the market is heading
Latest research on customer buying preferences
2
1
3
Bringing it all together – how to get from here to there 4
The Customer Experience Matters
4
Looking for & being offered financing
42% of
consumers are more
likely to shop at a retailer that offers financing3
1. IPSOS 2015 survey on consumer financing at retail 2. MMR 2015 Retail Consumer Financing Survey 3. Creative Research Solutions 2015 Merchant Financing Study
25%
% consumers offered financing options by a
big-ticket retailer2
% retailers that agree
financing allows them to make more sales3
46MM Apps
Declined1
42% of
consumers are more
likely to shop at a retailer that offers financing3
42%
% consumers to seek to
shop at retailers that offer financing1
46MM Apps
Declined1
90%
Applying for financing
33% 35%
Abandoned Cart Spent Less
or Delayed Purchase
Abandoned Cart 28%
49%
What action consumers take if declined for credit2
% of consumers declined financing by a primary credit provider1
% of customers that don’t apply out of fear of being declined2
% of consumers less likely to make a purchase if they have to complete more than 1 application2
53%
1. Vyze Commissioned First Annapolis Study – 2016 . 2. MMR 2015 Retail Consumer Financing Survey
6
Customers are asking for more
Cost Convenience
Promotions
Trust
Immediacy
Simple Application Monthly Payment & Interest Rates
Approval Amount Likelihood of
Approval
Understandable Terms & Conditions
Apply online before going into store
Sales Associate Involvement
MMR 2015 Retail Consumer Financing Survey
The Retail Financing Space Guide 1,001 Pages
Retail Consumer Financing Market Map*
LENDERS TECHNOLOGY PLATFORMS INTEGRATION
Primary Secondary Tertiary Multi-Lender Platforms
Own Application Interface
Apply, Purchase, Settlement Process
Integration Specialists
Typically approves customers with excellent
and very good credit
Typically approves customers with good and
fair credit
Typically approves customers with poor, limited or no credit
history
Provides access to multiple lenders usually
behind primary credit provider
Makes it convenient to apply for credit via a
simple online application
Seamlessly integrate multiple lenders through
the entire application, purchase and settlement
process
Core competency in multi channel integrations
* Vyze Market Map is meant to be representative not exhaustive
Financing truths today & tomorrow
Markets are cyclical so protecting against risk is
necessary
FICO scores matter in credit assessment but there is
increasing experimentation
Myfico.com Forbes.com
Changes that are inevitable
Catering to diverse
audiences requires
diversity of options2
Transactions will no longer be an event but a more
seamlessly integrated part of the experience3
Third parties will redefine the
retailer – customer
relationship3
Greater awareness of financing
as a revenue &
loyalty driver1
1. . First Annapolis Consulting 2. Vyze Research 3. Deloitte retailer trends 2016
The Marrying of Technology & Lending
Fintech Considerations for Revenue Channels Checkout Experience Full Ecosystem
Lending Products Approval Rates Integration
C O N S I S T E N C Y
C O N V E N I E N C E
What to do to prepare for the future
PCI compliance - high levels of data security standards to prevent breaches of harmful information
Seamless experience - Able to run customer’s details through a network of financing option and provide an instant offer for a customer
Flexibility - Choose partners that provide you the flexibility to make changes as economic conditions shift & as your business evolves
Marketing & training support - Initial & ongoing training, online: In-cart/out of cart, utilization email campaigns, display, employee incentives
All customers - Put the right financing program in place that allows you to offer a consistent experience to your entire customer base
14
Vyze at a glance
Proven technology platform § Technology – integration, full lifecycle
– apply, buy, clear § Full Spectrum Lending supply -
primary, secondary, tertiary lenders § Support – training, reporting,
marketing
Why Digital River what
facts
customers
Headquartered in Austin, TX
In 2,800+ retail locations Cloud-based Technology Platform
We partner with retailers & manufacturers to create the simplest, most satisfying financing experience for their customers, wherever and whenever they shop.
solutions Financing Center
POS terminal
eCommerce
