10-Q, Member Exclusive

Shopping and financial services: The match we didn’t know we needed

  • The latest trend shaking up the industry is the increasing convergence of shopping and financial services.
  • Joining the fray after Chase is PayPal, the newest entrant in the advertising market. PayPal may not attract the same criticism as Chase but it could face a different type of challenge [hint: data privacy] that requires its attention and adept handling.
close

Email a Friend

Shopping and financial services: The match we didn’t know we needed

    The trend of intertwining retail more deeply with financial services

    by SARA KHAIRI

    While it’s often said that matches are made in heaven, some surprising combinations come to life right here on Earth. Just as pineapples on pizza spark debate, these unexpected pairings can evoke different reactions. The latest trend shaking up the industry is the increasing convergence of shopping and financial services.

    The trend

    BNPL solutions are a prime example of merging shopping with financial services, effectively integrating financial firms into the consumer’s purchase journey.

    Another emerging trend is the move by banks and financial firms into the advertising sector to diversify their revenue streams. This shift could be in response to recent industry developments, including the impact of higher-for-longer interest rates on banks’ net interest income (NII), rising regulatory compliance costs, and increasing pressures on interchange revenues affecting nearly all financial firms.

    JPMorgan Chase surprised everyone by embracing an unexpected, modern strategy. The bank introduced a retail media network in April this year, venturing into a market already under the sway of major retailers.

    Joining the fray after Chase is PayPal, the newest entrant in this market. It plans to establish a new advertising platform, PayPal Ads, centered around transaction data from its nearly 400 million active accounts. 

    “PayPal Ads”

    To kickstart the platform, PayPal has brought on board notable talents.


    subscription wall for TS Pro

    0 comments on “Shopping and financial services: The match we didn’t know we needed”

    10-Q, Member Exclusive

    Brilliantly Boring since 1865: Why PNC Bank’s brand campaign is both clever and creative

    • PNC Bank's 'Brilliantly Boring' campaign highlights its checking, savings, and digital banking tools -- but with a twist.
    • The bank has no qualms in embracing that 'banking SHOULD be boring', as boring in today's chaotic world equates to smart, steady, dependable -- all words you want from your bank.
    Sara Khairi | June 10, 2024
    Banking, Member Exclusive

    Banking briefing: Bank data is only the first step in solving for personalization

    • Fintechs have been better at offering personalized experiences than banks, but some of the biggest banks in America have played catch up and are now leveraging internal data to offer more personalized experiences.
    • This falls short of ideal personalization, where an FI uses both internal and external fintech data to fully understand a customer's financial life. While challenging, some infrastructure like API-based data sharing exists.
    Rabab Ahsan | May 29, 2024
    10-Q, Member Exclusive

    When will AI become the beating heart of JPMorgan’s operations?

    • Jamie Dimon, at the helm of JPMorgan Chase, has been a vocal proponent of AI and Gen AI, actively spearheading its incorporation into his bank's operational framework.
    • While the bank still faces other challenges like scaling software development and ensuring the accuracy of Gen AI models across diverse datasets, it has positioned itself to address emerging regulatory dynamics.
    Sara Khairi | May 28, 2024
    Member Exclusive, The intersection of shopping and finance

    FIs turn to shopping to find new avenues to engage customers

    • Financial institutions have an opportunity to better engage their customers on the web and in app.
    • But to do that, they must think about increasing their partnerships in order to better serve their customers beyond the tried-and-true.
    Zachary Miller | May 23, 2024
    10-Q, Member Exclusive

    The strategies behind MoneyLion’s march to profitability

    • MoneyLion's strategy capitalizes on the margin differentials between first-party and third-party products, achieving a 90% product margin through cross-selling initiatives.
    • The firm is pursuing continuous enhancements and investments in its business operations, particularly in expanding the depth of the overall marketplace experience going forward.
    Sara Khairi | May 20, 2024
    More Articles