NLB Buy&Go is a relatively new name, but the service has quite a long history. How would you describe its DNA, and what sets it apart from traditional consumer loans?
True, we only became NLB Buy&Go this past April, when we joined the NLB Group. Before that, we were known as 1stavno. For years, we were mainly a white-label provider of point-of-sale consumer credit. Basically, our focus was retailers first, not so much end customers. That's still largely true today. NLB Buy&Go isn't a traditional consumer loan where someone goes to the bank for financing before making a purchase – it's part of the purchase itself. Our business is really a mix of banking and retail. The main goal is to let customers buy on installments right at the point of sale, which we make happen through our retail partners, and in turn, we're helping retailers boost sales. We want to give people the option to complete a purchase even when they can't cover it with cash, using installment payments. A rough but pretty accurate comparison would be paying with checks, like our parents used to do.
Point-of-sale financing has become an important part of the shopping experience. You say your goal is to help retailers. How are you making that happen, and how did you get them to embrace the service?
We've always been most successful when a retailer understood our service as a marketing tool, not just a payment method for people who can't afford something. The retailer has to build it into their marketing strategy. Purchase decisions happen in the store or on the website, and our service lets retailers not only avoid losing sales but actually increase them.
"Our goal is to let customers buy on installments at the point of sale, while helping retailers increase sales at the same time.
The system has to be incredibly flexible, though, because every retailer is different. Our dev team is constantly adapting to make sure the process runs smoothly. The key is understanding that exact moment when a customer is standing in front of a salesperson or at checkout.
A good example is a furniture seller who started talking to customers about installment options and ended up upgrading sales. Once customers found out they could pay in installments, they went for a pricier product because they weren't limited to available cash or their account balance anymore. Situations like that are game-changers for retailers who already get that f inancial products are part of their sales story.
You work with Slovenia's biggest retailers – Harvey Norman, Big Bang, Lesnina, IKEA. Which industries picked up this model fastest?
If we set aside real estate, the automotive sector has always been one where installments are a must. There's just no other way. We've been working with car dealers on consumer credit for the past six, seven years. That's already part of our DNA, since we're part of NLB Lease&Go, which mainly deals with automotive f inancing. Outside the automotive segment, the fastest adopters were retailers with higher average purchase values. Furniture, electronics – where amounts range from a few hundred to several thousand euros. But I'd also emphasize training the sales staff here. That's an incredibly important, practically essential part of working with retailers. Imagine you're a cashier, you're scanning items, and suddenly you're supposed to be closing loans. Probably doesn't feel great. So we show sales staff how to present our product to customers simply, without fear or banking jargon. At first, they might feel uncomfortable, so it's crucial we give them the right tools and knowledge. Once they see how easy it is, that the whole process takes just a few minutes, there's no problem anymore.
The backbone of the whole system is technology that enables quick decisions when they're needed. How do you ensure speed and security, while also using data to support retailers?
Without technology, we couldn't talk about instant decisions or good user experience. Everything happens 36 www.frodx.comin real time: checking limits, risk assessment, signing the loan. All at the point of purchase. We use the latest directives and technologies that give us insight into a buyer's financial picture for more accurate decisions. But data isn't just important for risk assessment. We use it to help retailers too. We give them feedback. If a retailer decides to run a promotion, like 0% EOM, we can tell them how successful it was compared to when they didn't have it, and where there are additional growth opportunities. Technology makes financing part of the shopping experience, not an extra bureaucratic step.
There's competition in the market. We know Leanpay, abroad there's the strong Klarna, and other players who might show up here too. What's your key advantage?
The offering of similar point-of-sale installment payment services has really grown in recent years. This is where we have a big advantage. As part of the NLB Group, we have backing and stability, which matters a lot with this kind of service. Retailers know there's a strong institution behind the product, and customers feel safe because they trust the brand. It's true that NLB Buy&Go is a young brand that we still need to strengthen, but the trust that NLB brings directly impacts conversion. People decide to buy more easily when they know who's behind it.
You're working with FrodX on campaign optimization and execution through a Growthas-a-Service (GaaS) model. How does that collaboration work in practice?
About two years ago, we decided to use the Emarsys tool, and FrodX came on board to help us get the most out of it. Clear insight into customer behavior, good assessment of which campaigns might work based on season, type of retailer and buyer. There are really three of us in this process: FrodX, who helps us shape campaigns with their knowledge and tools; the retailer, who expresses their wishes; and us, who prepare the framework. So it's not just about generic campaigns or the number of emails sent, but about the impact we measure. That's what makes the difference in the end. Because of this kind of collaboration, we can quickly test different ideas. Sometimes in just a few days we see which communication brings more clicks, inquiries, or completed purchases, and we adjust and optimize everything on the fly for other retailers across the network too.
"The differences between providers are small until you get to the question of trust. People probably decide a bit more easily when they know who's behind it.
What's the future of consumer financing? What can we expect in the coming years?
The industry is already pretty mature, especially if we focus on purpose-specific consumer loans – financing purchases. I believe we'll be important in this space for a long time, since working with retailers is necessary. At the same time, the service has to be accessible to customers of all banks, because one retailer can't easily negotiate with every bank at once for special promotions.
I also expect continued development toward greater automation and complete integration into the shopping experience – what we call embedded finance. Interestingly though, for now the service is used somewhat more in physical stores than in e-commerce, probably because people still prefer to handle bigger purchases like furniture or appliances in person. But that'll definitely change with new generations.
