The UK consumer credit market continues to recover at a modest pace. The biggest providers are looking to increase their lending, mainly to prime borrowers with good risk profiles. Consumer confidence has recently started to improve, and this is likely to translate into increased demand for credit, although the on-going squeeze on real incomes will keep significant growth in check.
Gain an in-depth understanding of the factors that will drive the consumer credit market over the next few years.
Learn where the best opportunities for future growth in the unsecured market lie.
Access Verdict Financials five year lending forecasts and discover how each sector of the consumer credit market will perform relative to one another.
Which lines of credit will enjoy the best prospects for growth in coming years?
What are the prospects for niche sectors such as payday loans and home credit?
What developments will influence market trends and product innovation in consumer credit over the next few years?
Consumer confidence has improved in 2013, and this is likely to lead to increased appetite for borrowing. Retail sales are starting to recover in many sectors, which will help to drive rising use of credit cards, personal loans, and POS retail finance. However, continuing falls in real incomes will serve to hold down the rate of growth.
The huge growth in motor POS finance during 201213 will not last. The market has been driven by the existing of competitive personal contract purchase deals, but manufacturers will be unable to such attractive deals indefinitely. Tougher regulations governing payday lending will restrict further growth opportunities in that sector.
Total unsecured gross lending (excluding student loans) is predicted to rise from an expected total of 201.6bn in 2013 to 230.7bn in 2017, representing a CAGR of 3.4%. Credit cards will see the highest rate of growth of all lines over the forecast period.