There are grounds for optimism regarding the future of the unsecured lending market, and this is reflected in Verdict Financial's gross lending forecast. Unsecured lending over the next five years will be robust, rising from an estimated 216.2bn in 2014 to 255.1bn in 2018, equating to a compound annual growth rate of 4.2%.
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 our 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 the coming years?
What are the prospects for niche sectors such as payday loans, peer-to-peer lending, and home credit?
What developments will influence market trends and product innovation in consumer credit over the next few years?
The rising pace of economic recovery and growing levels of consumer confidence will help boost consumer appetite for lending over the next few years.
Low incidences of bad debt, looser lending criteria, and greater availability of unsecured lending will ensure that the supply side helps the sector to grow over the forecast period.
Credit card advances are expected to perform strongly over the forecast period to reach 168bn by 2018. Credit card providers will incentivize higher credit card spending by further developing incentives such as interest-free balance transfers, rewards, and loyalty schemes.