DUBLIN – (BUSINESS WIRE)–That “UK Consumer Credit: Forecasts and Future Opportunities to 2023” a report was added to ResearchAndMarkets.com offerings.
The UK consumer credit market experiences challenging conditions in 2019. Loans in 2020 will increase by 5%, but overall growth will remain flat around 4-5% for the remainder of the forecast period. This means gross advances are expected to total 372.4 billion in 2023.
This report offers forecasts of a five-year gross loan for the consumer credit market until 2023. This report offers insight into the main macroeconomic, regulatory and other factors that will drive demand and supply over the next five years. It also provides insights for total consumer credit including overdrafts, P2P loans, motorcycle financing, payday loans, home loans, credit cards, and retail finance.
The following factors will drive the market over the next few years:
Supply side: Stricter loan criteria, high incidence of bad credit, and the intention of the Prudential Regulatory Authority to impose a more stringent regulatory regime – together with a cautious approach to unsecured loans among providers – will limit the growth rate of credit supply during the forecast period.
Demand side: Credit demand is likely to persist due to slow economic growth, high levels of existing household debt, and low levels of productivity on the macroeconomic side. Weak retail sales, which reflect consumers’ reluctance to spend, will also adversely affect the appetite for lending.
Overdrafts will decrease because the Financial Conduct Authority encourages banks to reform their overdraft practices and customers adjust their spending habits to avoid high-cost loan lines.
The growth of the motor vehicle finance sector has contracted, down to 3.1% in 2019. New car sales are declining, and excess vehicles that will enter the used car market over the next few years will reduce prices.
The payday loan sector experienced a large contraction due to tougher regulations, including tight price limits and comprehensive affordability checks. This resulted in several lenders leaving the industry.
Reasons to Buy
Develop more targeted strategies through analysis of the development of major consumer credit markets.
Inform your future plans with our five-year gross progress forecast for all lines of credit.
Analyze trends with details of historical gross progress on various lines of credit.
Benchmark yourself against competitors and make sure you stay competitive when new innovations start to enter the market.
Be prepared for how regulation will impact the consumer credit market over the next few years.
Main Topics Covered
1. EXECUTIVE SUMMARY
1.1. The state of the UK consumer credit market
1.2. Prospects for the niche sector
1.3. The critical success factor
2. CONSUMER CREDIT MARKETS THAT DECLARE CHALLENGE CONDITIONS IN 2019
2.1. Gross loan growth will decline in 2019, but will recover during the forecast period
2.2. The supply of consumer credit is expected to decrease
2.2.1. Reduced supply is determined to affect the availability of credit
2.2.2. The quality of new loans has improved over the past two years
2.2.3. Quarterly write-offs on other unsecured debt have surged while write-off of credit card debt remains high
2.2.4. PRA applies a more stringent regulatory regime
2.3. Consumer demand for unsecured loans will be affected
2.3.1. Credit providers reported a decline in unsecured credit requests in Q4 2018
2.3.2. Macroeconomic factors also show moderate credit demand
2.3.3. Weak retail sales reflect consumers’ reluctance to shop
2.3.4. Tighter loan criteria and affordable personal loans support the demand for credit
2.3.5. The increasing debt to household income ratio will affect credit demand
2.3.6. Increasing consumer confidence will support credit demand
2.4. Lloyds Banking Group is the market leader in personal loans
3. FUTURE PERFORMANCE WILL VARY BY SECTORS
3.1. P2P loans will be the fastest growing sector
3.2. The proliferation of alternative payment methods will have an impact on credit card lending
3.3. Growth in motorcycle financing will slow down during the forecast period
3.4. Regulatory interventions will shake the overdraft market
3.5 Online and POS financial availability will support retail financial growth
3.6. Home loan loans will grow at a marginal rate
3.7. Payday loans will contract during the forecast period
3.8. P2P loans will see sustained growth over the next few years
4.1. Creditspring offers loans without interest
4.2. Tully provides digital debt management
4.3. Lendable provides loans fast and without hassle
4.4. The Cooperative Bank opens a loan market according to its ethical approach
4.5. Koyo aims to help underbanked borrowers
4.6. SafetyNet offers flexible and comfortable payment style finance
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