1. Market Research
  2. > Financial Services
  3. > Banking
  4. > Bank Lending Market Trends

Consumer Credit in the UK - Key Trends and Opportunities to 2019

  • September 2015
  • 80 pages
  • Timetric
Report ID: 2510970

Summary

Table of Contents

Search Inside

Synopsis
Consumer credit has shown consistent signs of growth since 2014 – the stock of lending has 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 due to the recovery of 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.

Summary
- Consumer credit strengthening since the start of 2014, as economic recovery gains momentum

- Consumer credit has shown consistent signs of growth since 2014 – the stock of lending has 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 due to the recovery of 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.

- Record-low interest rates on personal loans driving other loans and advancements category

- HSBC became the first lender to break the 5% interest rate barrier for its GBP7,500–15,000 personal loan in September 2014, triggering a price war between mainstream lenders, as each bank or building society tried to get to the top of the comparison tables. This has shown no sign of abating in the 10 months since, with Sainsbury’s offering rates as low as 3.5% in August 2015.

- This means that lending is cheaper than ever for consumers, which has unsurprisingly given the industry a boost. The personal loan category was hit harder than any other in the aftermath of the financial crisis, and the stock of personal loans remains over GBP30.0 billion below its January 2008 total, so there is still ample room for recovery.

- Central bank rate at remains at 0.5%; rise no longer imminent, but still set for mid-2016

- The Bank of England’s (BoE) base rate has been at a record low since March 2009, at 0.5%, meaning that financial institutions have had much cheaper access to credit. This rate looks set to rise in the second quarter of 2016, however, according the Office for Budget Responsibility’s (OBR) economic forecasts. This had been expected sooner, but record low inflation and weaker global growth looks set to delay the increase by at least a quarter.

- This will cause the cost of credit to rise, as banks will have to pay more for funds. Increases will be steady, however, and the first rise will only be to a maximum of 0.75%, meaning any setback to the industry should be minor.
Retail sales soar as consumers increasingly buy higher-value products

- Total retail sales have nearly matched their entire 2014 total during the first six months of 2015, as extraordinary annual growth looks inevitable. This trend is matched in the higher-value categories of retail; both the electronics and computer categories are close to matching their 2014 annual totals. This has undoubtedly been driven by a surge in consumer confidence – as shown in the previously mentioned index – caused by an increase in real wages. Real wages had been in decline for much of the review period, but an increase in wages from the start of 2014 combined with record-low inflation in 2015 reversed this trend from the end of 2014. Clothing, food, oil and air fares have been among the categories that have significantly fallen in price so far in 2015, which has allowed consumers to spend more money on other items.

- Motor finance continues to record extraordinary growth

- Motor finance is the only typical form of consumer credit that has recorded substantial growth for a prolonged period. Both the number of new cars bought from dealerships and the value of advances paid on new cars have grown monthly (on the previous year) consistently staying at above 20% since the beginning of 2012. The value of new cars has grown every single month since June 2011, while the value of used cars bought last declined in June 2012; unprecedented growth compared to the rest of the market during this period.

Scope
- This report provides market analysis, information and insights into the UK consumer credit industry

- It provides a breakdown of the types of unsecured loans offered 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

- It forecasts the future of the consumer credit industry in the UK over the next five years

Reasons To Buy
- Gain an understanding of the UK consumer credit industry.

- Access monthly and annual statistics on every aspect of the UK consumer credit market, both in written form and in graphs and tables.

- Read analysis of the relevant market statistics, outlining what has been happening in the consumer credit market, why it has been happening and what to expect over the coming years.

- Read about economic factors impacting the UK consumer credit market

- Read about how individual banks and building societies are affecting the market, in terms of market shares and innovations.

Key Highlights
The stock of outstanding consumer credit stabilized throughout 2013 and grew consistently during 2014, where it recorded a positive growth rate for all 12 months. Total outstanding lending fell from GBP172.5 billion to GBP168.8 billion from 2010–2014, with the most substantial decline coming in 2011.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

Veronica helps you find the right report:

Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

Purchase Reports From Reputable Market Research Publishers

Online Lending Market Landscape 2016 - Trends, Business Models & Investments in Online Lending Platforms

  • $ 5500
  • Industry report
  • May 2017
  • by Meidata Market Research

The report is based on comprehensive analysis of the main factors and trends driving the global online lending marketplace in recent years, including a review of the following types of online vendors: ...

Australian Consumer Credit: Forecasts and Future Opportunities

  • $ 3450
  • Industry report
  • March 2017
  • by GlobalData

Australian Consumer Credit: Forecasts and Future Opportunities Summary GlobalData’s “Australian Consumer Credit: Forecasts and Future Opportunities” report analyzes the Australian consumer credit ...

Saudi Arabia Consumer Finance Market By Type (Unsecured Consumer Finance and Secured Consumer Finance), Competition Forecast & Opportunities, 2012-2022

  • $ 2700
  • Industry report
  • April 2017
  • by TechSci Research

High demand for residential houses from expatriates entering the country, rising land prices, increasing number of initiatives by government to strengthen the financial system and aggressive marketing ...

Consumer Lending In Malaysia

December 2016 $ 1910

Download Unlimited Documents from Trusted Public Sources

Fintech Markets in the US

  • June 2017
    3 pages
  • Fintech  

  • United States  

    World  

View report >

Bank Lending Industry

  • June 2017
    48 pages
  • United States  

    United Kingdom  

    Europe  

View report >

Bank Lending Markets in the US

  • June 2017
    2 pages
  • Bank Lending  

    Consumer Loan  

  • United States  

View report >

Housing Statistics

22 days ago

Related Market Segments :

Consumer Loan
Banking
Credit Card

ref:plp2015

Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.