Consumer Credit in the UK – Key Trends and Opportunities to 2019
- Pages: 80
- Published: September 2015
- Report Code: FS0140MR
Demand for consumer lending rocketed during the fourth quarter of 2014, as payday lenders pulled away from the market due to increased regulation, and mainstream banks loosened their lending criteria to compete. Demand in the final quarter of 2014 marked the highest level since before the financial crash, according to the Bank of England’s Credit Conditions Survey
Consumer credit has shown consistent signs of growth since 2014 – the stock of lending decreased only once in the year and a half from then to June 2015 – for the first time since before the financial crisis. This is a result of a recovery in consumer confidence, with the consumer confidence index recording its first positive number since the financial crisis in August 2014, and has been positive for every month since, up to June 2015. The demand for, and availability of, credit increased since the second quarter of 2014, and has also been a key factor.
Improving economic conditions combined with record-low interest rates encouraged banks and consumers to lend and borrow more since the start of 2014. Borrowing is now cheaper than it has ever been in the UK, which is starting to trigger an increase in lending, a situation that has played out so far in 2015.
• The competitive landscape of the UK consumer credit industry.
• The market size, including detail on the total stock of lending, total gross lending and total net lending.
• Insight into lending by type of credit.
• Information on other loans and advances in the UK consumer credit market.
• An investigation of consumer confidence, in addition to analysis of demand for, and availability of, credit.
• Detail on lending to underbanked, unbanked and sub-prime customers.
• A breakdown of the types of unsecured loan offered in the UK.
• An analysis of the key drivers and outlook for the market.
• Information on the main banks in the UK.
• Key news and regulatory developments in the UK consumer credit industry.
• Forecasts on the future of the consumer credit industry in the UK over the next five years.
Which bank became the first lender to break the 5% interest rate barrier for its personal loan in September 2014? What has been the effect of this on the competitive landscape? Who has been offering rates as low as 3.5% in August 2015?
How far has the stock of personal loans remained below its January 2008 total?
What is the anticipated effect of a rise in the Central bank rate on the UK consumer credit industry? When is this rise expected to occur?
What is the only typical form of UK consumer credit that has recorded substantial growth for a prolonged period? How has this growth been reflected since June 2011? How does it compare to the other categories of the UK consumer credit market?
Reasons to buy
• Gain an in-depth understanding of the UK consumer credit industry and its competitive landscape.
• Analyze monthly and annual statistics on every aspect of the UK consumer credit market to validate market positioning and inform sales and marketing strategies.
• Investigate forecasts for the UK consumer credit industry, and align propositions to gain a competitive advantage.
• Identify economic factors impacting the UK consumer credit market, and ensure awareness of the risks in launching a new product into the market.
• Evaluate the impact of individual banks and building societies in the UK consumer credit market. Assess the market shares of competitors and emulate innovations.
Santander UK Plc
Royal Bank of Scotland Group Plc
HSBC Bank Plc
Lloyds Banking Group Plc
Table of Contents
1 Executive Summary
2.1 What is this Report About?
3 Market Analysis
3.1 Market Size
3.1.1 Total Stock of Lending
3.1.2 Total Gross Lending
3.1.3 Total Net Lending
3.2 Lending by Institution
3.2.1 Lending from MFIs
126.96.36.199 Stock of Lending from MFIs
188.8.131.52 Gross Lending from MFIs
184.108.40.206 Net Lending from MFIs
3.2.2 Lending from Other Sources
220.127.116.11 Stock of Lending from Other Sources
18.104.22.168 Regulatory Changes
22.214.171.124 Net Lending from other consumer credit lenders
3.3 Lending by Type of Credit
3.3.1 Credit Cards
126.96.36.199 Stock of Lending
188.8.131.52 Credit Card Gross Lending
184.108.40.206 Net Lending on Credit Cards
220.127.116.11 Credit Card Activity
18.104.22.168 UK Bank Write offs
22.214.171.124 Interest Rates on Credit Cards
3.3.2 Other Loans and Advances
126.96.36.199 Stock of Lending
188.8.131.52 Gross Lending
184.108.40.206 Net Lending on other forms of consumer credit
220.127.116.11 Other loans and advances
4.1 Consumer Confidence
4.2 Demand for and Availability of Credit
4.3 Economic Climate
4.3.1 Interest Rates
4.3.2 Energy Bills
4.3.3 Source of debt
4.4 Retail Sales
4.5 Lending to Underbanked, Unbanked and Sub-Prime Customers
4.5.1 Unbanked Customers
5 Market Outlook
6 Competitive Landscape
7 Regulation and Policy
7.1.1 Financial Conduct Authority (FCA)
7.1.2 Prudential Regulation Authority (PRA)
7.1.3 Monetary Policy Committee (MPC)
7.1.4 Treasury Committee
7.1.5 Competitions and Markets Authority (CMA)
8 UK Bank Profiles
8.1 Santander UK Plc
8.2 Lloyds Banking Group
8.3 Barclays Plc
8.4 Royal Bank of Scotland Group Plc
8.5 HSBC Bank Plc
9 Personal Loans Offered
9.1 Santander UK Plc
9.2 Royal Bank of Scotland Group Plc
9.3 HSBC Bank Plc
9.4 Barclays Plc
9.5 Lloyds Banking Group
9.6 Nationwide Building Society
10.1 Review Period
10.2 Forecast Period
12.2 Contact GlobalData
12.3 About GlobalData
12.4 GlobalData’s Services
List of Tables
Table 1: The UK – Consumer Credit Market (GBP Billion), 2009–2014
Table 2: The UK – Consumer Credit Lending (GBP Million), 2015–2019
List of Figures
Figure 1: UK – Outstanding Consumer Credit, 2010–2015
Figure 2: UK – Consumer Credit Gross Lending, (GBP Million) 2010–2015
Figure 3: UK – Annual Consumer Credit Gross Lending (GBP Million), 2009-2014
Figure 4: UK – Total Gross Lending and Repayments, GBP Million: 2013–2015
Figure 5: UK – Total Net Consumer Credit Lending, GBP Million: 2013–2015
Figure 6: UK – Outstanding Consumer Credit from MFIs (GBP Million), 2010–2015
Figure 7: UK – Consumer Credit Gross Lending from MFIs (GBP Million), 2010–2015
Figure 8: UK – MFI – Gross Lending and Repayments: 2013–2015
Figure 9: UK – MFI Net Consumer Credit Lending: 2013–2015
Figure 10: UK – Outstanding Consumer Credit from Other Sources (GBP Million), 2010–2015
Figure 11: UK – Annual Consumer Credit Gross Lending from Other Sources (GBP Million), 2010–2015
Figure 12: UK – Other Consumer Credit Lenders – Gross Lending and Repayments: 2013–2015
Figure 13: UK – Other Consumer Credit Lenders – Net Consumer Credit Lending: 2013–2015
Figure 14: UK – Outstanding Consumer Credit, Credit Card Loans (GBP Million), 2010–2015
Figure 15: UK – Annual Outstanding Consumer Credit, Credit Card Loans (GBP Million), 2010–2015
Figure 16: UK – Credit Card Gross Lending (GBP Million), 2010–2015
Figure 17: UK – Annual Credit Card Gross Lending (GBP Million), 2009–2014
Figure 18: UK – Credit Cards – Gross Lending and Repayments: 2013–2015
Figure 19: UK – Net Credit Card Lending: 2013–2015
Figure 20: UK – Value of Credit Card Purchases (GBP Million), 2009–2014
Figure 21: UK – Number of Credit Card Purchases (Million), 2009–2014
Figure 22: UK – Number and Value of Credit Card Purchases (GBP Million), 2010–2015
Figure 23: UK – Write-Off Growth Rates on Credit Card lending from Banks: 2009–2015
Figure 24: UK – Interest Rates on Credit Card Loans: 2009–2015
Figure 25: UK – Stock of Consumer Credit from Other Loans and Advances, Monthly: 2010–2015
Figure 26: UK – Annual Stock of Other Loans and Advances: 2010–2015
Figure 27: UK – Other Loans and Advances, Gross Lending, Monthly: 2010–2015
Figure 28: UK – Annual Other Loans and Advances, Gross Lending, 2009–2014
Figure 29: UK – Other Loans and Advances – Gross Lending and Repayments (GBP million): 2013–2015
Figure 30: UK – Other Loans and Advances – Net Consumer Credit Lending (GBP Million): 2013–2015
Figure 31: UK – Overdraft Lending, Monthly Amounts Outstanding (GBP Million), 2009–2015
Figure 32: UK – Overdraft Lending, Annual Amounts Outstanding (GBP Million), 2009–2015
Figure 33: UK – Interest Rates On UK Overdrafts (%), 2009–2015
Figure 34: UK – Revenue From Arranged and Unarranged Overdraft Charges (GBP Million), 2011–2013
Figure 35: UK – Personal Loans, Outstanding Amount (GBP Million), 2011–2015
Figure 36: UK – Personal Loans, Gross Lending (GBP Million), 2009–2015
Figure 37: UK – Interest Rates on Personal Loans 2009–2015
Figure 38: UK – Motor Finance Dealership Lending, New Cars – Value of Advances and Percentage Change on Previous Year: 2011–2015
Figure 39: UK – Motor Finance Dealership Lending, New Cars – Number of Cars bought and Percentage Change on Previous Year: 2011–2015
Figure 40: UK – Motor Finance Dealership Lending, Used Cars – Value of Advances and Percentage Change on Previous Year: 2011–2015
Figure 41: UK – Motor Finance Dealership Lending, Used Cars – Number of Cars bought and Percentage Change on Previous Year: 2011–2015
Figure 42: UK – Student Loans, Overall Amount Awarded (GBP Million), 2010–2014
Figure 43: UK – Paydays Loans, Percentage of Revenue of Loans Rolled Over or Refinanced, 2012
Figure 44: UK – Payday Loans, Percentage of Loans Rolled Over or Refinanced, 2012
Figure 45: UK – GfK Consumer Confidence Index, 2012–2015
Figure 46: UK – How has Demand for Total Unsecured Credit from Households Changed: 2007–2015
Figure 47: UK – How has Availability for Total Unsecured Credit for Households Changed: 2007–2015
Figure 48: UK – Lending, Salaries, Inflation and Annual Increases (%), 2011–2015
Figure 49: UK – CPI Monthly Inflation Rate (%), 2009–2014
Figure 50: UK BoE Official Bank Rate (%), 2004–2015
Figure 51: UK Annual Gas and Electricity Bills: 2004–2014
Figure 52: UK Source of Debt: 2013
Figure 53: UK – Total Retail Sales, Monthly (GBP Billion), 2010–2015
Figure 54: UK – Spending on Higher-Value Items, Monthly (GBP Billion), 2010–2015
Figure 55: UK – Spending on Higher-Value Items, Annually (GBP Billion), 2010–2015
Figure 56: Total Consumer Credit: Outstanding Balances Forecast: 2015–2019
Figure 57: Total Gross Consumer Credit Lending: Forecast: 2015–2019
Figure 58: Credit Card Lending: Outstanding Balances Forecast: 2015–2019
Figure 59: Other Loans and Advancements Lending: Outstanding Balances Forecast: 2015–2019
Figure 60: UK Credit Card Market Shares: 2014
Figure 61: UK Personal Loan Outstanding Balances: Market Shares: 2013
Figure 62: UK Banking Regulatory Framework, 2014