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40% of consumers exclusively buy from companies that offer BNPL and cashback, according to the report. 25-34-year-olds are 50%. No surprise. 37% prefer BNPL’s flexible payments. 25–34-year-olds also have a 50% rate.

The cost-of-living crisis has caused an increase in the use of embedded banking solutions. However, not all businesses have adopted the technology, providing those that have a competitive advantage. Based on this, Vodeno, a cloud-native Banking-as-a-Service (BaaS) provider, and Aion Bank, a licensed Belgian bank, have discovered that the use of embedded banking has enhanced client loyalty. The study found that 40% of consumers will only stick with organizations who offer BNPL and cashback. The percentage rises to 50% among 25-34-year-olds. Not surprising. 37% of respondents choose BNPL’s flexible payment options. Like the preceding statistic, this one rises to 50% for 25–34-year-olds.

Price now takes precedence above product quality and variety for many consumers as a result of the rising cost of living. According to the survey, 44% of respondents said that product costs have the biggest influence on their brand loyalty. A good product selection, however, is cited by 43% as the most important aspect of brand loyalty.

The effectiveness and worth of loyalty cards have frequently been questioned. However, the survey found that if they incorporate BNPL, customers are more inclined (46%) to engage with them. This percentage increased to 53% for consumers aged 16 to 24 and was highest among the youngest consumers questioned. In the age group of 25 to 34, it increases much more (by 65%).

19% of consumers who were asked how frequently they purchase with their favorite brands responded “monthly”. Another 16% responded, “once every two to three weeks.” However, 36% of those who have used an embedded financial product from a brand claim to visit its app or website three to five times each month. Within the 25-34 age range, this percentage jumps to 43%.

Ensuring ongoing assistance

The report by Vodeno/Aion emphasizes the ongoing consumer growth as well as the advantages of embedded banking for business and customer loyalty. If a company offers these services, 23% of respondents say they are more inclined to suggest it to friends and family. The same amount of respondents also claim that they are more likely to spend money with the brand than with rivals.

The advantages of embedded banking cannot be overlooked, according to Kim Van Esbroeck, country head for Aion Bank Belgium and chief revenue officer for Vodeno/Aion. Our study provides compelling evidence that customers are using these solutions and that doing so is having a positive impact on their brand loyalty to BaaS-enabled companies.

“Consumer competition has never been fiercer, especially in these challenging economic times. More alternatives are available from companies that provide flexible payment and loan options. This can then increase consumers’ purchasing power at crucial times. Brand loyalty is also being impacted by embedded banking. 43 percent of consumers aged 25 to 34 claim to spend more money with companies that provide embedded banking products.

“We have already observed how innovative client journeys are made possible by BaaS-enabled embedded banking. It is obvious that enhancing brand loyalty programs will be the next area to experience upheaval.

BNPL and cashback
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