The Future of Credit. A European perspective

The consumer credit market across Europe is changing. The diverse and different European credit markets are seeing significant disruption and change, this report continues major trends and some of the implications for the future. Changing consumer behaviour, technological change and the implications of e-commerce are amongst topics covered. Supported by deep engagement across key stakeholders across the continent, we generate a view of an exciting future for this sector.

Further information:

Credit is a crucial enabler of consumption for consumers that might otherwise be unable to afford a certain product. As more and more shopping takes place online, new digital solutions for point-of-sale finance, often developed by agile technology companies and slickly inserted into the customer journey, have gained favour with millennial shoppers wary of deficient digital offerings of incumbent banks.

Technological advances and supportive regulation have made it easier for these new players to break up incumbents’ control over the lending value chain and to compete on the basis of greater speed, personalisation and efficiency of service. The loyalty and inertia that used to bind consumers to their banks are weakening across Europe, as regulation has made easier than ever before to establish relationships with multiple financial service providers.

More than 30 senior stakeholders and industry experts across the continent were interviewed for their view on what the future holds for consumer credit and who will come out on top in a world, where technology is making each consumer increasingly contestable.