Uncertain Economy Forces Consumer-Centric Focus, Says LendingClub

The payments industry must be more consumer-centric in the face of an uncertain economy, LendingClub Financial Health Officer Anuj Nayar writes in the new PYMNTS eBook, “2023 Payments New Year’s Resolutions.”

The tumultuous 2022 market tested many financial services’ business models, and the past year has proved that not every business model can be adjusted to work in the current macro environment. Players in the payments industry will continue to face obstacles in 2023, whether it’s new regulations, acquisitions or the macroeconomic environment. However, one aspect will remain the same for any firm that wants to succeed in the payments industry — the consumer. Those that have a well-defined target market and are laser-focused on serving their consumers should be able to manage through the economic uncertainty.

Exacerbated by sky-high prices due to sustained inflation and a potential recession, consumers who are already struggling to pay essential bills like food and housing have no energy or resources to put toward short-term or long-term financial goals, let alone savings in general. They need consumer-centric resources now more than ever.

As rate hikes continue, likely well into 2023, consumers are leaning on credit products like credit cards as payment tools to fund their lives. As seen through the consistent growth in credit card balances and continued consumer spending, consumers are relying on the payments industry to help them make ends meet and adapt to the changing environment. The payments industry needs to leverage this relationship to benefit their consumers. For example, FinTech residents like LendingClub show their commitment to the consumer by offering a digital-first experience backed with a full bank charter to provide a holistic, trustworthy and simplified financial experience and to empower consumers on their path to better financial health.

In 2023, the payments industry should resolve to become more consumer-centric and help consumers during these uncertain times.