How Barclays plans to grow its U.S.-based digital bank

Barclays is making a massive play to dominate the U.S. consumer lending market. Following its acquisition of the personal loan platform Best Egg, the bank is shifting its strategy to turn millions of one-time borrowers into long-term banking customers. For retailers and merchants, this signals a major shift in the lending landscape. Barclays currently powers private-label credit cards for giants like Gap and American Airlines. Now, they are integrating Best Egg’s technology to offer more seamless personal loans and point-of-sale financing options. This move means your customers may soon have more liquidity through Barclays-backed products. The bank is focusing on 'cross-selling,' which means they want to offer a full suite of financial tools to their 25 million existing U.S. users. If you use Barclays for your store's financing, expect to see new digital features and potentially higher approval rates as they leverage Best Egg’s data to vet borrowers. They are moving away from being just a credit card provider to becoming a full-service digital lender. This competition among big banks generally leads to better terms and more tech-forward tools for the merchants who use their platforms.

Source: American Banker — Top News

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