Abstract
Overview
Introduction
Online aggregators are a growing force in the distribution of consumer credit
products. While they do pose a number of challenges to UK lenders, the latter
must look to benefit from the many opportunities they offer.
Scope
- Discusses both the advantages and disadvantages online aggregators pose to
UK lenders.
- Provides insight into how some lenders are innovating and taking advantage
of this recently developed distribution channel.
- Details the main online aggregators with regards to consumer credit
products and their business models.
Report Highlights
Online aggregators present a number of important advantages to lenders in
terms of acquisition and distribution, including low cost of customer
acquisition in comparison to other channels, a captive audience, a choice on
the volume of customers they desire, relationships that are easy to manage and
high visibility.
Lenders concerns are that aggregators' orientation on price means many lenders
are unable to portray products in the way they want, that they can receive too
many applications from the wrong kind of customer, and that customers acquired
via this channel yield low profits and offer little cross-sell opportunity.
Online aggregators have changed the competitive dynamics of the consumer
credit market. Price competition has increased, giving rise to lower margins
for lenders, and product innovation for aggregator-only distribution is
gradually becoming more common.
Reasons to Purchase
- Understand what lenders can do to take full advantage of the distribution
opportunities posed by online aggregators.
- Keep track of competitors' strategies with regards to the online
aggregator distribution channel.
- Gives you a competitive edge by understanding what the future holds for
this channel of distribution.
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