What Financial Institutions Can Learn from M&Ms and OREOs

The check-out line. In the past, this was THE place for selling candy as shoppers waited to buy their groceries. However, the rise of digital is cutting into this tried-and-true product placement strategy. Less than half — 44% — of consumers now make the majority of their grocery purchases at physical stores, according to a recent survey by PYMNTS.

For many industries — candy included, the “digital transformation” will make or break the future, according to Karen Webster, founder and CEO of PYMNTS.com. At this year’s Money Experience Summit 2023, she shared how digital is creating new market dynamics, new opportunities, and new sources of value. 

For Mars, the world’s largest confectionery and maker of M&Ms and OREOs, Webster shared that it’s leveraging digital to create new ways of distributing its products into the market. Instead of relying on in-store purchases, it has transformed M&Ms and OREOs into a platform that gives the company direct access to the consumer. You can now order differentiated and personalized M&Ms or OREOs online — something you cannot get at the grocery store. 

So what can financial institutions learn from this approach? In the past decade, more than 20,000 physical bank branches have closed. And, consumers overwhelmingly prefer to view and manage their finances through a mobile app or online. According to Webster, success is more than just using technology and “going digital.” The key for financial institutions will be leveraging embedded capabilities to create new business opportunities. For instance, the customized M&Ms version of the money experience could be embedding payments and banking solutions into the digital shopping experience that makes it easier for consumers to understand their finances and take action without extra steps. With embedded finance and payments, financial providers can reach consumers directly at the point of sale. 

Winners will be those that eliminate friction, deliver intelligence, and provide the simplicity and security that consumers crave.