We’re excited to announce our 2023 State of Credit Report, revealing the findings of a survey based on responses from 3,000 consumers in the US and UK. The report explores consumer sentiment towards their credit cards and financial service providers, shedding light on opportunities for brands and banks to strengthen customer loyalty.
According to our new report, even satisfied credit card holders are on the hunt for their next credit cards, driven by their desire for enhanced features and personalized experiences. While 70% of US consumers expressed satisfaction with their primary credit cards, 53% believe their cards can be improved.
Additional key findings include:
Credit Card Rewards Take Center Stage
According to the report, credit card rewards have a firm hold on US cardholders, with 58% citing rewards as the largest benefit of using credit cards, followed by convenience (46%) and fraud protection (44%). While credit cards attract consumers, almost three-quarters (74%) of consumers surveyed said their current card has room to personalize rewards based on individual spending habits.
Consumer Brand Loyalty Underlines Potential for Embedded Finance
The report details how consumers have become increasingly reliant on their favorite brands to provide credit products, with 50% of US consumers surveyed owning a credit card affiliated with a brand and 62% considering themselves a customer of the brand or store instead of the bank. This highlights the growing potential for brands to offer embedded finance services to meet their customer needs.
Buy Now, Pay Later’s Credit Building Potential
Consumers are open to using Buy Now, Pay Later solutions to access additional financial services and help build their credit. According to the survey, 71% of US BNPL users surveyed would be interested in accessing other financial services through their BNPL provider and 64% of consumers looking to build their credit said they would be interested in using BNPL to build credit and increase their score to get a credit card.
A shifting landscape in consumer credit preferences, where customization, personalization, and innovative features are key drivers in the quest for the next credit card. Brands and banks looking to enhance customer loyalty and drive revenue must adapt to these evolving consumer demands. Read the report here.
