11/08/2018
76% Of Consumers Are More Likely to Make a Purchase If a Simple and Seamless Payment Plan is Offered
PROVIDENCE, R.I.--(BUSINESS WIRE)--
Having clear and easy to access financing options available at the point
of purchase dramatically increases the likelihood that a consumer will
make a retail purchase, according to research released today by Citizens
Bank.
The inaugural Citizens Point of Sale Survey found that 76% of U.S.
consumers are more likely to make a retail purchase if a payment plan
backed by a simple and seamless point of sale experience is offered.
According to the survey, 62% of consumers would prefer fixed monthly
plans with clear payment terms. Trust in the institution offering the
financing, along with a clear understanding of how the amount will be
paid off, were seen as the most important factors for consumers
considering a large purchase. Further, 66% of consumers feel that they
have enough credit cards and prefer not to open more just to make a big
purchase. This points to consumers wanting an alternative to opening up
a new credit card to make a large ticket purchase at a retailer.
“The bottom line is that consumers want a simple and easy experience
when they make a large purchase, and we believe that this research shows
that retail brands can modernize their payment model by moving away from
the co-brand/store credit approach of the past,” said Andrew Rostami,
EVP and Head of Unsecured Lending and Cards at Citizens Bank. “We’ve
seen this first-hand as the financing partner for well-known technology
brands and believe there is tremendous opportunity in this space.”
The Citizens Bank-sponsored Point of Sale Survey, conducted by Mintel,
found that the current state of retail financing dominated by co-branded
credit cards leaves room for improvement in the customer experience with
fewer than half (43%) of consumers likely to recommend this financing
experience for big-ticket purchases. The survey also suggested that
payment plan terms should be clear and easy to understand because it is
the most important factor for consumers making a large purchase. Trust
in a lending institution is the second-most important factor for
consumers making large purchases; the survey also found that traditional
lenders with name recognition are more trustworthy in the eye of the
consumer.
Categories that were most popular for this type of payment plan included
electronics, appliances, specialty retail, home improvement, and
automotive repair.
Citizens Bank is a leader in point of sale financing and has invested
heavily to innovate its payment and purchase model for larger retail
purchases. Its solutions are differentiated in that it can power
omni-channel retailers, supporting both the online and retail channel in
a seamless way and can also help consumer goods manufacturers provide
financing programs for their products that are sold through distributed
retailers and dealers. The company has an industry leading partnership
with one of the world’s most recognizable brands that offers consumers a
0% loan to upgrade to the latest smartphone.
Survey Methodology
On behalf
of Citizens Financial Group, Mintel Comperemedia conducted a nationally
representative online survey of 1,837 adults in June 2018. This sample
included 520 respondents that used a retail payment plan to finance a
large purchase in the past 24 months and 617 respondents that opened a
retail credit card to finance a large purchase in the past 24 months.
About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and largest
financial institutions, with $158.6 billion in assets as of September
30, 2018. Headquartered in Providence, Rhode Island, Citizens offers a
broad range of retail and commercial banking products and services to
individuals, small businesses, middle-market companies, large
corporations and institutions. Citizens helps its customers reach their
potential by listening to them and by understanding their needs in order
to offer tailored advice, ideas and solutions. In Consumer Banking,
Citizens provides an integrated experience that includes mobile and
online banking, a 24/7 customer contact center and the convenience of
approximately 2,900 ATMs and approximately 1,150 branches in 11 states
in the New England, Mid-Atlantic and Midwest regions. Consumer Banking
products and services include a full range of banking, lending, savings,
wealth management and small business offerings. In Commercial Banking,
Citizens offers corporate, institutional and not-for-profit clients a
full range of wholesale banking products and services, including lending
and deposits, capital markets, treasury services, foreign exchange and
interest rate products and asset finance. More information is available
at www.citizensbank.com
or visit us on Twitter,
LinkedIn
or Facebook.

View source version on businesswire.com: https://www.businesswire.com/news/home/20181108005056/en/
Citizens Financial Group, Inc.
Rory Sheehan,781-655-3931
[email protected]
Source: Citizens Financial Group, Inc.