Study Finds Only Half of Consumers Satisfied With Embedded Lending Options

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    Lenders in key global markets offer an ever-increasing range of consumer credit products. Still, consumers express dissatisfaction with the current options. Just 50% of consumers across six major economies are highly satisfied, with rates in Australia and Japan particularly low. While younger individuals tend to be more satisfied than their older peers, just 60% of millennials, the age group with the greatest satisfaction levels, are highly satisfied. The availability of embedded lending represents a key area where providers appear to be missing the mark.50%: Share of U.S. consumers highly satisfied with lending options

    This data clearly illustrates the unfulfilled demand for credit across key markets — and an opportunity for embedded lending providers. These products can fill gaps in credit availability and reach new market segments by providing consumers with additional financing options. These include buy now, pay later services or instant credit card offers that they can use instantly at checkout.

    These are just some of the findings in “The Embedded Lending Opportunity,” a PYMNTS Intelligence report commissioned by Visa. This report explores the state of play for embedded lending and consumer preferences about financing options. It draws on insights from a survey of 8,326 consumers across six major economies: Australia, Germany, India, Japan, the United Kingdom and the United States. The survey was conducted from Jan. 22 to Feb. 13.

    37%: Portion of embedded lending users who say the credit limit is lower than what they neededOther findings from the report include the following:

    Many more consumers express interest in embedded lending than currently use it.

    Consumer interest in these lending options is high. Forty-three percent of consumers show high interest in switching to a provider offering these options. At the same time, just 15% of respondents used an embedded lending product in the last 90 days. Younger consumers and those reporting tight financial situations were the most interested in switching to providers offering embedded lending options.

    Cash flow availability drives embedded lending use.

    55%: Share of millennials reporting strong interest in using embedded lendingConsumers experiencing ongoing cash flow issues are much more likely to have used embedded lending in the last three months than those with more stable financial situations. Fourteen percent of respondents with ongoing cash flow strain used these lending options to pay for groceries. On the other hand, just 2.3% of those without such pressure did so. The data shows a similar pattern across several types of expenses.

    Consumers want these options for many reasons.

    Among consumers who used credit products in the last year, 30% said they would likely prefer embedded lending for emergency expenses. The share jumps considerably for those who say they generally use financing out of need. However, sufficient credit limits need to be available to meet these needs.

    Nearly half of consumers express strong interest in changing to providers offering these lending options. Still, providers must address friction points and understand consumer dynamics to draw them in. Download the report to learn how embedded lending can meet unfulfilled demand in the consumer finance space.

    MIT Student Invents Breakthrough Art Restoration Technique

    artwork

    Ever since he was a child, Alex Kachkine has been fascinated by paintings. He would visit museums and was drawn in by the visual art depicted in landscapes, historical figures and religious scenes.

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      “Anytime I visit New York City, the first place I go to is the art gallery,” Kachkine said in an interview with PYMNTS. “It’s been a lifelong passion of mine.”

      Such adoration naturally means Kachkine would look to acquire art works of his own. But with a limited budget, the MIT graduate researcher with a discerning eye instead bought damaged oil paintings he could restore.

      “I ventured into art conservation around 10 years ago when I realized that you can’t buy a Monet reasonably,” Kachkine said. “But you can, even with the limited income I had back then, buy damaged paintings. And I realized that I could take one of those damaged paintings, restore it, and then I would have a really nice painting.”

      Kachkine knew that restoration is manually laborious. The painting has to be cleaned of debris and any past restoration efforts have to be removed as well. Then, the damaged parts in paintings have to be manually painted while staying true to the artist’s style.

      This typically means months to years of painstaking work. Kachkine did it the traditional way at first, but thought there must be a better way. So, he invented a method using artificial intelligence (AI), transfer paper, printers and varnish. His paper describing the technique is published in the journal Nature.

      Kachkine said his method greatly speeds up restoration: In repairing a 2-foot by 2-foot painting, “The Adoration of the Shepherds,” from the late 15th century, he spent 3.5 hours compared to 232 hours it would normally take to do it manually. That’s faster by 66 times.

      Source: “Physical restoration of a painting with a digitally constructed mask,” Nature

      Taking the cleaning time into account, his method would speed up the entire restoration process by four to five times, Kachkine said.

      Around 70% of paintings in institutional collections are not displayed in public due in part of the cost of restoring them, according to Kachkine’s paper. Therefore, restoration efforts typically center around the most valuable pieces of art with the rest left buried in storage.

      Kachkine said various AI models are able to generate images of damaged paintings as they would look fully restored. But these would exist only virtually. He said his technique is the first to translate the digital restored image into physically restoring the actual painting.

      “This is the first time we’ve been able to take all of those digital tools and actually end up with a physically restored painting from them,” he said. “And it’s so much faster than doing these kinds of restorations by hand.”

      How Gen AI Helps Restore Paintings

      The process begins with cleaning the artwork of debris and old restoration efforts. Once cleaned, the painting is scanned to produce a high-resolution image. Kachkine then uses a variety of Adobe-integrated digital tools, including convolutional neural networks and partial convolution models, to reconstruct missing regions.

      Once the digital restoration is complete, a transparent film mask is printed with the reconstructed imagery. This laminate consists of nine ultra-thin layers, including a white backing for color vibrancy and laser-printed pigments. The result is an overlay that sits precisely on the original painting, with printed colors covering only the damaged areas.

      “It’s thinner than human hair,” Kachkine said, adding that the film is removable using standard conservation solvents, preserving the artwork underneath.

      The ethical implications of this method were also central to Kachkine’s design. He developed algorithms that determine which regions to restore based on how human vision perceives color and contrast.

      “We really only select the damages that human vision is sensitive to,” he said. “You can tell what areas have been restored and which have not. That’s really important from an ethical standpoint in conservation.”

      At first, Kachkine said he wasn’t sure how his method would be received. But he was gratified to see broad interest from conservators, cultural institutions and private equity firms. He also has a GoFundMe page.

      Kachkine said he is now collaborating with the Italian Ministry of Culture on restoring frescoes in earthquake-damaged chapels in Tuscany.

      His dream painting restoration job would come from the Italian Renaissance.

      “There are a number of Italian paintings, especially around the Renaissance, that have very bright colors” such as Raphael, Kachkine said. “I’d love to be able to restore one of those [paintings] where before restoration, it would be very difficult to appreciate all of the fun colors that might emerge and the interesting textures that are there.”

      “That’s the dream,” he said. “It might take a little bit before I could get my hands on one, but I’ll keep trying.”

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      Photo: MIT graduate researcher Alex Kachkine looking at a painting. Credit: Alex Kachkine