Consumers face a multitude of choices when it comes to credit products, and their decision-making process is influenced by several key factors — their assessments are about far more than just getting a good rate.
The PYMNTS Intelligence study “Credit Union Innovation: How Credit Products’ Rates and Terms Impact FI Selection,” created in collaboration with PSCU, draws from surveys of more than 4,000 United States consumers to understand their criteria for choosing different credit products, which in turn could determine their choice of financial institutions (FIs).
The most common factor that consumers listed as their top priority when applying for credit products is, perhaps unsurprisingly, rates and other terms, with 26% — a plurality — citing this as their leading concern. Yet only a minority of those surveyed — 46% — listed this as an influential factor overall.
Conversely, the most popular factor that consumers considered overall, even if it was not their No. 1 concern, is convenience. Fifty-eight percent of those surveyed listed convenience as an influential factor, though only 11% ranked it at the top of their list.
Trust in the FI is another influential factor for consumers. Approximately 19% of respondents stated that trust is the most influential factor in their decision-making process, and another 23% said that it was an important factor. This highlights the importance of establishing trust between consumers and financial institutions. Building trust can be a key differentiator for FIs looking to attract and retain customers.
Other factors that consumers consider are the ability to apply and monitor credit products through an app or site, the option to get quick or instant approval and the proximity of a given institution’s physical locations.
FIs must consider these factors to attract and retain account holders in an increasingly competitive market. By understanding and addressing these consumer preferences, FIs can position themselves as trusted partners and gain a competitive edge in the industry.
The post 58% of Consumers Consider Convenience When Applying for Credit Products first appeared on PYMNTS.com.
