Banks need to pick up the pace as the BNPL market grows
Published: November 22, 2022, 10:00 a.m. Updated: November 30, 2022, 2:41 p.m.In line with increasing consumer demand for flexible payment services, the Buy Now Pay Later (BNPL) market is growing rapidly around the world. At the same time, there are many banks that lag behind in development and risk losing market share if they do not act quickly. – We see that companies that can offer BNPL services are growing and taking market share from the retail banks’ cake, where consumer credit is an important part of the business. This means that all international banks, including the Swedish ones, now have to start acting on consumers’ changed buying behavior and demand, and also start offering BNPL services, says David Larsson, CEO of Sileon. There is a clear shift underway in the payment and credit market where the younger generations are driving the demand for the digital and flexible experience that BNPL solutions bring. According to a February 2022 Insider Intelligence report, the BNPL services market is expected to reach a transaction value of $680 billion globally as early as 2025*. This means a doubling of the market size that was forecast a few years ago. In order to keep up with the trend, however, you should act quickly, which can be challenging for banks. – The difficulty for the banks is to face this development themselves, as many of them are stuck in old, complex infrastructure. This means that large resources and heavy IT investments are required for the banks if they are to build up a BNPL platform themselves internally, says David Larsson. Short “time to market”Swedish Sileon, which operates on the international market, offers its customers a flexible and innovative BNPL platform. Through the platform, banks can gain access to a fully scalable BNPL functionality in-house. – A BNPL service must be flexible and it must be quick to get the offer out to the market. With our modular SaaS solution, banks can launch their BNPL offering in just a few weeks. Our service is easy to use, fully scalable and can be adapted with different offers to different customer groups in different markets and in different countries, explains David Larsson. Unlike building a BNPL platform in-house, it is usually significantly faster, easier and cheaper for banks to use Sileon’s SaaS solution. As the BNPL service is completely modular, Sileon’s customers can choose whether they want to use parts of it to expand their own payer offer or invest in a complete solution. – We are quite alone in this offer on the market. If you choose Sileon, you also get future insurance in the bargain, as we are at the forefront and constantly develop the service to constantly meet the ever-changing needs of consumers. Our customers can feel secure in the fact that this is what we are capable of and that we are all really passionate about, concludes David Larsson. About SileonSileon is a global fintech company that offers an innovative SaaS-based Buy Now Pay Later (BNPL) functionality to banks, lenders and fintechs. With Sileon’s modular SaaS solution, customers get quick access to a scalable, cost-effective and API-based BNPL platform – on their own. Read more here *Statistics from Insider Intelligence, published February 3, 2022 The article is produced by Brand Studio in collaboration with Sileon and not an article from Dagens industri
