Synopsis
• This report provides market analysis, information and insights into the UK consumer credit market
• It provides a breakdown of the different forms of consumer credit in the UK
• It analyses drivers and the outlook for the market
• It provides information on the main banks in the UK market
• It covers news and regulatory developments
Scope
After steadily declining from 2011, consumer credit growth showed early signs of an upturn in 2013. Fluctuations in consumer confidence and developments in the wider economy are key factors behind recent trends in credit growth. New loan products and changes in lending criteria have also been influential.
Lending on credit cards, motor finance and unsecured personal loans declined during the 2008-2012 review period as recession, high unemployment and high loan interest rates undermined consumer confidence and reduced their propensity to borrow for the purchase of high-value, discretionary items. Signs of a nascent recovery have been in evidence in 2013.
In contrast to standard lines of consumer credit, student loans and payday loans have registered strong growth over the 2008-2012 review period. Sustained growth in the former has been due to students borrowing more to cover a rise in university tuition fees, while tight lending conditions through conventional channels have fuelled the rapid increase in sums borrowed from payday loan companies.
The unbanked population played very little part in the traditional consumer credit industry as it has become increasingly difficult for a potentially high-risk customer to receive a loan from a retail bank since the financial crisis. The emergence of Payday loans, together with store credithave, however, played a role in granting these sub-prime groups access to forms consumer credit.
Summary
• This report provides market analysis, information and insights into the UK consumer credit market
• It provides a breakdown of the different forms of consumer credit in the UK
• It analyses drivers and the outlook for the market
• It provides information on the main banks in the UK market
• It covers news and regulatory developments
Reasons To Buy
• Gain an understanding of the UK consumer credit industry
Key highlights
After steadily declining from 2011, consumer credit growth showed early signs of an upturn in 2013. Fluctuations in consumer confidence and developments in the wider economy are key factors behind recent trends in credit growth.
Table Of Contents
1 Executive Summary 2 Introduction 3 Market Analysis 4 Consumers 5 UK Retail Banks 6 UK Bank Profiles 7 Personal Loans Offered 8 News 9 Methodology
List Of Tables
Table 1: UK ? Store Credit,(GBP Million), March 2013 23
Table 2: UK ? Store Credit,(GBP Million), June 2013 23
Table 3: UK ? Store Credit,(GBP Million), November 2013 23
Table 4: UK ? Loans and Overdrafts (GBP Billion), 2013 26
Table 5: UK ? Adult Population Not Benefiting From Banking, (Million), 2011 38
List Of Figures
Figure 1: UK ? Consumer Credit Gross Lending (GBP Million), 2012-2013 9
Figure 2: UK ? Annual Consumer Credit Gross Lending (GBP Million), 2007-2016 10
Figure 3: UK ? Outstanding Consumer Credit (GBP Million), 2011-2013 11
Figure 4: UK ? Outstanding Consumer Credit Forecast (GBP Million), 2014 12
Figure 5: UK ? Outstanding Consumer Credit, Other Loans and Credit Cards (GBP Million), 2011-2012 13
Figure 6: UK ? Credit Card Gross Lending (GBP Million), 2012-2013 14
Figure 7: UK ? Outstanding Consumer Credit - Credit Card Loans (GBP Million), 2011-2013 15
Figure 8: UK ? Value of Credit Card Purchases (GBP Million), 2008-2015 16
Figure 9: UK ? Number of Credit Card Purchases (Million), 2008-2015 17
Figure 10: UK ? Value of Credit Card Purchases (GBP Million), 2012-2013 17
Figure 11: UK ? Number of Credit Card Purchases (Million), 2012-2013 18
Figure 12: UK ? Value of Credit Card Purchases (GBP Million), 2012-2013 19
Figure 13: UK ? Other Loans and Advances, Gross Lending, 2012?2013 20
Figure 14: UK ? Outstanding Consumer Credit, Other Loans (GBP Million), 2011-2013 21
Figure 15: UK ? Personal Loans, Gross Lending (GBP Million), 2011-2013 24
Figure 16: UK ? Personal Loans, Outstanding Amount (GBP Million), 2011-2013 25
Figure 17: UK ? Overdraft Lending, Combined Monthly Amounts Outstanding (GBP Million), 2008-2013 26
Figure 18: UK ? Personal Loans and Overdrafts, Monthly Growth Rate, 2008-2013 27
Figure 19: UK ? Interest Rates On UK Overdrafts (%), 2008-2013 28
Figure 20: UK ? Revenue For Arranged and Unarranged Overdrafts (GBP Million), 2007-2011 29
Figure 21: UK ? Motor Finance Dealership Lending, Value of Advances (Percentage Change on Previous Year), 2013 31
Figure 22: UK ? Motor Finance, Number of Cars Bought on Finance by Consumers Through Dealerships, 2013 31
Figure 23: UK ? Paydays Loans, Percentage of Revenue of Loans Rolled Over or Refinanced, 2012 33
Figure 24: UK ? Payday Loans, Percentage of Loans Rolled Over or Refinanced, 2012 33
Figure 25: UK ? Student Loans, Overall Amount Awarded (GBP Million), 2010-2013 35
Figure 26: UK ? Student Loans Breakdown, Total Amount Paid (GBP Million), 2010-2013 36
Figure 27:UK ? GFK Consumer Confidence Index, January 2012 to September 2013 39
Figure 28: UK ? Lending, Salaries, Inflation and Annual Increases (%), 2010-2012 41
Figure 29: UK ? CPI Monthly Inflation Rate (%), 2008-2013 42
Figure 30: UK ? CPI Annual Inflation Rate Forecasts (%), 2014-2020 42
Figure 31: UK ? Spending on Higher-Value Items, Monthly (GBP Billion), 2010-2013 43
Figure 32: UK ? Spending on Higher-Value Items, Annually (GBP Billion), 2008-2013 44
