Let’s imagine you want to buy running shoes and you find a pair on Amazon. How would you like it if Amazon redirects you to the shoe manufacturer’s website to make the purchase? You’ll probably hate the experience since shoe manufacturing companies focus on making good shoes, not building great websites.

Customer acquisition is a key concern for any financial institution. In the past, financial institutions have largely relied on their own channels to acquire customers. However, with fintech firms entering the mix, they now have additional channels they can work with.

In this four-part series, I share my thoughts on the two major models in play, the redirect model and the marketplace model , and why I feel the marketplace model will come up on top.

The redirect model may seem clunky but, surprisingly, it is still prevalent in the financial industry today. There are a number of comparison sites that help consumers choose a financial product (like credit cards, loans and insurance), only to redirect them to the financial institutions to acquire the product.

On the other hand, marketplaces go beyond the comparison, as consumers can compare, apply and then immediately get an approval (or rejection) for the financial product of their choice, much like they would when buying a pair of shoes on Amazon or booking their hotel on Agoda.

As such, while comparison sites address one piece of the puzzle, the marketplace model provides a holistic solution that is more beneficial for both consumers and financial institutions.

Why it works for consumers

One-stop-shop to not only compare but also instantly procure financial products

Same digital experience to obtain a financial product, irrespective of the financial institution

to obtain a financial product, Real-time customised offers based on their profile and eligibility

based on their profile and eligibility Quicker approval as overheads in the financial institution’s operational process are reduced

as overheads in the financial institution’s operational process are reduced Product information presented in a neutral and consumer-friendly manner





﻿Why it works for financial institutions

Complementary channel to their own digital channels

to their own digital channels Saves cost by NOT processing applications that DON’T match eligibility criteria

by NOT processing applications that DON’T match eligibility criteria Potential to bring back their existing customers who are shopping around

Real data to understand their product’s performance against the market and not just their own website





In my next piece, I’ll write more about where I feel the redirect model falls short. Stay tuned and share your thoughts in the comments!



