Are High Decline Rates Killing Your Sales?

Are High Decline Rates Killing Your Sales?

In today's economy, consumer savings are stretched thin and it's impacting how people buy big-ticket items like furniture, jewellery and services like vocational training courses.

As experts in consumer financing solutions, FinMatch is here to unpack the trends and show how you can turn declines into conversions.

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The Savings Squeeze

According to data from the FCA's Financial Lives 2024 Survey, 57% of UK adults have savings of <£10,000. The data also shows 30% of UK adults had less than £1,000 in savings. That's unchanged since May 2022, indicating that, overall, savings have not kept pace with inflation.

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Why BNPL is Booming

As a consequence, consumers are driving the adoption of Buy Now, Pay Later and other finance options. With savings depleted, they're seeking ways to spread costs for medium-to-high value goods (e.g. bicycles, fitness equipment, or private healthcare). This prevalence isn't just a trend – it's a necessity in the UK market.

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The Decline Dilemma

Despite this boom in BNPL, many merchants report finance decline rates above 40% (and often much higher). Why? Traditional lenders aren't optimised for this growing low-resilience segment, leaving potential sales on the table.

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Abandonment Risk

FinMatch data shows: 65-75% of declined low-financial-resilience (LFR) consumers abandon online purchases over £1,000. That's lost revenue for sectors like motorbikes, musical instruments, tools, or elective surgeries.

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The Solution

There's a fix: Integrate a lender with credit products tailored for these customers via FinMatch. Convert up to a third of otherwise lost purchases and boost conversions with compliant, dynamic finance offers.

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Click here to enquire now!

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