Multi-Lender Retail Finance Can Turn More Browsers Into Buyers

By Mike Dawson, CEO of Deko

Mike Dawson sits down with Global Banking & Finance Review to discuss how Deko is disrupting the retail finance arena with its aggregation solution.

How would you describe Deko?

Deko is a next generation BNPL platform. A unique multi-product, multi-lender payments solution that allows merchants to provide customers with fast, convenient access to retail finance at the point of sale. The platform has been designed to cover a variety of basket sizes, from as little as £25, up to £25,000 and unlike other providers, because we draw upon a marketplace, we are always able to provide higher conversion rates for merchants at checkout. We cater for a variety of sectors across stores and online – a truly flexible solution tailored to the needs of each merchant we work with.

Why is it so important to improve checkout conversion?

Improved checkout conversion enables merchants to unlock new segments of their potential customer base, especially those fallen prey to basket abandonment. Basket abandonment is now a critical issue in UK retail, exacerbated by the changes that online and mobile shopping have brought to the sector. One recent study, for instance, found that the rate of basket abandonment among mobile shoppers in 2021 was 83%. That’s more than four in every five customers failing to complete their desired purchases.

This issue again highlights the value brought by a multi-lender approach that can match more customers with the finance solutions they need to convert their shopping into sales. And for merchants, turning more browsers into buyers will help lift their sales figures and improve customer loyalty.

What are the principal advantages of a multi-lender approach?

Unlike other providers that work with a single lender, with a fixed risk appetite, we can almost always ensure that customers are matched with a lender to finance their purchases. Essentially, we can confidently say “yes” to more merchants and more of their transactions, helping customers buy more of the things they love and giving merchants an opportunity to maximise their checkout conversion rate. In fact, we are able to improve merchants’ checkout acceptance rate by an average of 26%.

What other benefits does Deko’s solution bring to merchants?

Another key element of our solution that sets us apart from our competitors is the onboarding speed. Onboarding a new retail finance solution has typically taken a matter of weeks, or even months. This is time that merchants spend missing the benefits that retail finance brings. In contrast, we can onboard merchants in as little as 24 hours.

We hold integration quality and speed to the highest standard possible at Deko, and this has helped us enhance our onboarding process for new partners, offering greater scope to scale up, meaning merchants can see improvements in their checkout conversion rate in a matter of days rather than weeks or months. This time saving is unmatched in the market.

Does Deko do anything to support customers directly?

Although we are a business-focused solutions provider, we also offer our “Will I Qualify” website plug-in that helps consumers understand and engage with finance products before making an application. Many consumers do not engage with available offers due to a lack of confidence in their eligibility and the implications for their credit score, however, with “Will I Qualify”, consumers can run a rapid and confidential check to help them understand what retail finance options are open to them. This helps boost consumer confidence and ensures that even fewer sales remain out of reach, while the search does not leave a footprint at the credit bureau.

Can Deko tailor its products and services?

Yes. For merchants and their customers to benefit, the solutions that we implement must be adaptable to their changing needs and payment preferences. By delivering that, we can help ensure as high a checkout conversion rate as possible. This is ultimately why merchants invest in retail finance solutions; to empower their customers to complete more purchases, reducing basket abandonment at checkout, and therefore driving sales. As a result, tailoring these solutions to the needs of the merchant (and, by extension, their customers) is absolutely critical, and our multi-lender approach helps us achieve this.

What is Deko’s vision for the future?

We want to change the way that BNPL works, so that it works for everyone. Offering alternative payment methods at checkout is now the norm, but there are still far too few options for businesses outside fashion and other fast-moving consumer goods. Providing flexible payment options for a greater range of basket sizes, and therefore a greater variety of products, will improve the outcome of both online and in-person shopping trips for both merchants and customers. This is the potential that Deko’s platform has the power to unlock.

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