More than a third of consumers feel let down by the lack of flexible finance products offered by UK businesses, according to a research study.
The findings form part of a report into borrowing practices and frustrations with the consumer credit market. The research by the finance platform, Duologi, surveyed 1,000 UK residents and found that, on average, 34% of people think that UK businesses could be doing more to provide point-of-sale (POS) finance to their customers.
Despite many large brands already providing POS finance on purchases, more than two in five (42%) shoppers believe that retailers could do more in this respect.
Another 42% of people said that this payment model could be better utilised in the property industry for payments such as estate agent fees, conveyancing costs or added expenses for mortgage advisory services.
A further 32% of people believe that the education and training sector could do more to offer POS finance, with another quarter (24%) of people saying that the health industry should work harder to offer these options to help patients access a wider range of services and procedures like IVF.
Lastly, 32% of people stated that the travel industry’s POS finance offering could be made more accessible – not only for splitting the cost of a holiday but also for fees like rail season tickets, which often offer a better deal when paid upfront.
The research also showed that almost a fifth of shoppers would want to borrow from as little as £100 – but that many brands only offer finance over a certain amount; therefore, limiting their ability to tap into this market.
Duologi credit director, Rob Cottingham, commented: “Currently, POS finance is used most widely in retail but consumer appetite for credit options across a wide range of sectors is evident, and many think that these industries should be doing more to offer POS finance. Given the ongoing growth of e-commerce, the ability for these retailers to provide credit both on and offline could prove crucial in the future.
“Clearly, there is consumer demand for POS credit – so for those brands that do already provide finance options but aren’t seeing results, it’s vitally important to promote it more heavily. Simple tools such as pop-up banners near till points, posters in the waiting room or a clearly-visible website header can alert potential customers to the benefits of finance solutions, providing a clear reason to purchase from that business in particular.”