Consumers are increasingly likely to consider a loan from a non-traditional brand, such as Google, Apple or Amazon, although mainstream banks remain the preferred lender.
Research carried out by Equiniti Credit Services and Credit Kudos found that 64% of people would consider a loan from a non-traditional brand, providing it had a good reputation.
Amazon came out top, with 34% of people saying they would consider taking a loan from them if it was something they provided. Closely following the online retail giant was Google at 26% and Apple at 21%.
The report, entitled ‘A Brands’ New Decade: Loyalty on loan as consumers consent to data-driven lending services’ suggested that the market is “ready-made” for brands that can move quickly to deliver attractive credit products.
Sarah Jackson, managing director of sales at Equiniti Digital, which incorporates Equiniti Credit Services, said that lenders should focus on meeting the growing expectations for digital, consumer-centric services.
“While banks continue to play catch-up, there is a big opportunity for the tech-enabled brands that are known for delivering exceptional user experiences to make a play in consumer credit. Established lenders need to work hard to make up ground here,” she added.
The report, which is the seventh in a series of annual Equiniti Credit Services research reports investigating consumer attitudes to unsecured credit, also highlighted a change in consumer perception of Open Banking as they become increasingly aware of the benefits it offers and the demand for personalised and instant, consumer centric digital services grows.
It was also evident from the report that consumers are becoming increasingly receptive to how their data can be used to inform more personalised services, which Ms Jackson claims “presents a real opportunity for lenders”.
Of the 2,000 respondents included in the research, 58% said they would be willing to utilise Open Banking to share historical transaction data with credit providers if it meant reducing the time and effort needed for an application, and if it resulted in a better deal.