Inclusive lending can boost retail conversions
‘With interest rates remaining high and mainstream credit tightening, UK retailers are under growing pressure at the checkout. Today, more consumers face challenges securing traditional credit, leaving retailers with rising basket abandonment and fewer completed sales. At a time when every conversion counts, inclusive lending has become not just beneficial but essential,’ says Andy Smith, Snap Finance UK ceo.
‘At Snap we have long argued that point-of-sale finance must be more inclusive to reflect real people’s lives. Approximately 20.2million UK adults are financially underserved due to low credit scores, limited credit histories, fluctuating incomes or atypical employment patterns, cutting them off from traditional models. This leaves a significant portion without access to credit, with many consumers forced into either abandoning their purchase or seeking riskier, or less regulated, forms of credit.
‘Second-line lending from Snap fills this gap responsibly and intelligently. Instead of relying solely on credit scores, Snap, in a digital-first payment ecosystem, uses proprietary technology to deliver advanced affordability assessment and risk-based pricing to understand the individual behind the application. The result is fair access to credit whilst offering retailers a route to convert customers who would otherwise drop out.
‘Our approach offers both 0% and interest-bearing options with multiple term lengths
in one seamless journey, helping retailers say “yes” to more customers with a finance solution precisely matched to customers’ individual circumstances.’
For retailers, the impact is tangible, says Smith. By complementing prime lenders, declined customers get a second chance at approval, boosting sales and improving average order value in a seamless digital journey. This is helping retail partners
approve more applications responsibly and retain high-value customers who might otherwise walk away.
‘Responsible innovation remains central to inclusive lending. At Snap, our proprietary affordability technology is the first in the UK to integrate Universal Credit and HMRC
data into a fully digital income verification journey. Our Credit Strategy’s Best Use of Technology 2024 award-winning Income Portal combines multi-bureau data with Open Banking to assess affordability beyond credit scores alone. This enables faster, more accurate, responsible decisions whilst ensuring retailers can offer inclusive finance without compromising on regulatory expectations.
‘Inclusive lending is essential to ensure retailers maintain a strong customer base. Second-line finance acts as a shock absorber, supporting shoppers as they make their spending decisions while helping retailers maintain volume. Today, inclusive lending matters more than ever, not just for conversions at checkout but for supporting a more inclusive, resilient retail landscape.’
