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UK Personal Lending 2009: Competitive Dynamics in the UK Unsecured Personal Loan Market
Brief
Published: July 2009
Pages: 20
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 1746.88 Buy Now!
Research from: Datamonitor
Sector: Financial Services
Introduction
The UK unsecured personal lending market continued to struggle during 2008. The difficult conditions saw more lenders leaving the market and competition levels declining as the focus was on retaining good customers. As a result, average interest rates continued to climb.
Scope
*Provides market shares of balances outstanding and gross advances for major UK personal loan players
*Provides advertising spend for the top personal loan providers.
*Analyzes the key competitive developments in the UK market over the last 12 months.
Highlights
The competitive landscape in unsecured personal lending remains subdued. Lenders are looking to retrench towards their existing customer base to effectively ride out the storm. This unwillingness to take on risky business has meant that competitive dynamics are fairly minimal as lenders wait for the market to recover.
In June 2008, there were 46 lenders offering unsecured personal loans, down from 58 in June 2007. However, by June 2009 this number had dropped further to just 37. Lenders felt that the volatile market had exposed those with weak business models.
High impairment levels and the FSA's ruling that single premium payment protection insurance (PPI) should no longer be sold with a loan have presented difficulties for lenders. While neither problem is insurmountable, the two issues represent a drain on income which they are slowly overcoming. In addition, further PPI rulings are possible.
Reasons to Purchase
*Gain an insight into the performance of your competitors.
*Understand how the market is changing and evaluate what opportunities might arise from these changes.
*Learn how your competitors are adapting their strategies to the current economic climate.
The UK unsecured personal lending market continued to struggle during 2008. The difficult conditions saw more lenders leaving the market and competition levels declining as the focus was on retaining good customers. As a result, average interest rates continued to climb.
Scope
*Provides market shares of balances outstanding and gross advances for major UK personal loan players
*Provides advertising spend for the top personal loan providers.
*Analyzes the key competitive developments in the UK market over the last 12 months.
Highlights
The competitive landscape in unsecured personal lending remains subdued. Lenders are looking to retrench towards their existing customer base to effectively ride out the storm. This unwillingness to take on risky business has meant that competitive dynamics are fairly minimal as lenders wait for the market to recover.
In June 2008, there were 46 lenders offering unsecured personal loans, down from 58 in June 2007. However, by June 2009 this number had dropped further to just 37. Lenders felt that the volatile market had exposed those with weak business models.
High impairment levels and the FSA's ruling that single premium payment protection insurance (PPI) should no longer be sold with a loan have presented difficulties for lenders. While neither problem is insurmountable, the two issues represent a drain on income which they are slowly overcoming. In addition, further PPI rulings are possible.
Reasons to Purchase
*Gain an insight into the performance of your competitors.
*Understand how the market is changing and evaluate what opportunities might arise from these changes.
*Learn how your competitors are adapting their strategies to the current economic climate.