Friday, July 4, 2025
ZIIMP
No Result
View All Result
  • Home
  • Start Investing
    • Loans
    • Cryptocurrency
    • Stocks
  • Investing Strategies
    • Market Analysis
  • Contact Us
ZIIMP
  • Home
  • Start Investing
    • Loans
    • Cryptocurrency
    • Stocks
  • Investing Strategies
    • Market Analysis
  • Contact Us
No Result
View All Result
ZIIMP
No Result
View All Result

Ikea enters the consumer banking arena

Howard Olson by Howard Olson
February 12, 2021
in Banking
0

RELATED POST

Ziimp .com Tech Trends 2025: What Experts Won’t Tell You About The Future

The Banking Industry: Key Driver of Economic Transformation

The parent company of the home furnishing retailer purchased a 49% stake in Ikano Bank, a UK-based retail finance company specializing in point-of-sale (POS) loans and store-branded credit cards, with the option to acquire the remaining shares at a later date. Its financing solutions—including interest-free credit, interest-bearing loans, and buy now, pay later (BNPL) financing—will help Ikea achieve its goal of introducing more consumer banking services in-store and online. The transaction builds upon Ikea’s already robust set of financing options, with the potential of expanding into more innovative solutions like embedded lending.

Retailers are increasingly edging into financial services via embedded lending products, creating partnership opportunities for small banks. Here are two reasons why partnering with businesses like Ikea makes sense for banks:

  • POS lending (BNPL) is a burgeoning area for large retailers, providing a wide selection of potential partners for small banks. Ikea could join the ranks of dozens of retail chains who have teamed up with financial services providers to offer the payment option, including Walmart, Macy’s, and Neiman Marcus. Goldman Sachs digital offshoot Marcus’ partnership with JetBlue to finance eligible trips is the highest-profile example of a bank providing these services to a large business. There is strong interest in the service, with 50.1% of US consumers ages 34–44 having used it. Banks seeking to penetrate the fledgling industry will have a vast array of brands and experiences to choose from.
  • Partnering with large retailers provides small banks with exposure to a much bigger customer base than typically seen. A small bank would significantly boost brand recognition by partnering with a better-known business that sells expensive products customers want. More importantly, it could immediately increase a bank’s access to customers, eventually allowing it to create new products tailored to their specific needs. In a broader sense, increased collaboration between small banks and retailers could make them attractive acquisition targets, as evidenced by Ikea’s option to purchase Ikano Bank’s remaining shares at a later date. And these kinds of partnerships could also enable banks to pull in new customers by capitalizing on apparent consumer trust in retailers: In Insider Intelligence’s 2020 Digital Banking Trust survey, a greater percentage of US respondents cited Amazon as a brand they would trust to provide them with banking services, versus a bank that isn’t their primary provider.

Related Posts

A person holds a smartphone to their ear, standing against a futuristic blue and purple backdrop, reminiscent of Ziimp.com Tech Trends 2025. Neon light trails encircle them, creating a dynamic, techno-inspired atmosphere as digital patterns and data symbols adorn the scene. | ZIIMP
Tech

Ziimp .com Tech Trends 2025: What Experts Won’t Tell You About The Future

January 3, 2025
A building facade featuring ornate stone architecture with the word "BANK" prominently displayed in large, gold letters. The background is a dark rectangular panel that contrasts with the light-colored stone, emphasizing its distinguished banking heritage. | ZIIMP
Banking

The Banking Industry: Key Driver of Economic Transformation

September 4, 2024
Digital Payments 101: A Beginner’s Guide to Modern Transactions
Digital Payments

Digital Payments 101: A Beginner’s Guide to Modern Transactions

September 18, 2024
Chase Bank | Ziimp
Banking

Discover the Convenient Chase Banking Hours That Fit Your Schedule!

January 23, 2023
Revolution in Twitter: Elon Musk claims Twitter has actually had huge revenue decrease as marketers stop spending
Tech

Revolution in Twitter: Elon Musk claims Twitter has actually had huge revenue decrease as marketers stop spending

November 4, 2022
The 10 Largest Fintech Firms In America 2022
Fintech

The 10 Largest Fintech Firms In America 2022

July 22, 2022
Next Post
Most major indexes are closed for Lunar New Year holiday

Most major indexes are closed for Lunar New Year holiday

  • About
  • Advertise
  • Privacy & Policy
  • Contact Us

© 2022 ZIIMP

No Result
View All Result
  • Home
  • Start Investing
    • Loans
    • Cryptocurrency
    • Stocks
  • Investing Strategies
    • Market Analysis
  • Contact Us

© 2022 ZIIMP