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Study: The majority of Germans say “yes” to financing their purchases in instalments – and “no” to taking out a loan with their principal bank

Vienna, January 11, 2022

More than seven out of ten Germans are open to consumer loans. Meanwhile retailers beat traditional banks when it comes to granting loans: One third of customers are sure they get better conditions when applying for a loan at a store. This is shown in the study “Consumer Behaviour Rethought”, for which the Viennese fintech Credi2 surveyed a representative sample of 1,000 Germans and Austrians.

Consumers like to finance expensive purchases such as furniture, household appliances, e-bikes or smartphones in installments. “Young customers up to the age of 35 in particular want to remain financially flexible when shopping and also treat themselves to something spontaneously,” says Daniel Strieder, CEO and Founder of Credi2. “Modern buy now, pay later solutions allow them to do that.”

Lending at the bank is inconvenient for consumers

For the majority of customers, however, their principal bank is out of the question when it comes to financing a purchase in installments. Only 40 percent of those surveyed want to apply for a loan at the bank. “Today, customers no longer want a break between shopping and financing, as is traditionally the case with banks,” explains Strieder. A quarter of those surveyed said that applying for financing there was too inconvenient for them and that the approval process took too long.

Better conditions at stores

“Instead, customers want to be able to apply for financing during the purchasing process and immediately find out whether their loan is approved. “With “buy now, pay later” solutions such as revolving loans, installment payments or alternatively subscription models, customers today get various options directly from the retailer,” says Credi2’s CEO. Furthermore, customers assume that retailers offer them better conditions compared to their principal bank, offering a more favourable amount of the credit line, more flexible instalment amounts and a more favourable repayment period. “A new business model is developing here for banks,” Daniel Strieder is convinced. “Embedded finance in the shop – whether for purchases on site or online. This allows banks to act in the background and thus still occupy the interface to the customer.”

Here you can download the study “Consumer Behaviour Rethought”.

About Credi2 GmbH

Credi2 specialises in embedded finance solutions for ‘buy now, pay later’ and subscriptions. The fintech enables banks, merchants and OEMs to offer modern sales financing solutions via the Credi2 platform. Customers include Volkswagen Bank, Raiffeisen Bank International and Apple. Credi2 has worked with these companies to launch innovative and highly successful payment solutions in a short period of time.  

The Vienna-based scale-up was founded in 2015 by Daniel Strieder, Michael Handler and Jörg Skornschek. In addition to the founding trio, the management team also includes Christian C. Waldheim and Jennifer Isabella Schimanko. Credi2 is a fast-growing fintech currently employing more than 90 people from all over Europe.