Table of Contents
- CHAPTER 1 EXECUTIVE SUMMARY
- Introduction
- Sizing the UK non-standard population in 2005
- Datamonitor estimates that the non-standard population stood at 9.1
million in 2005
- Underlying macro-economic factors ultimately drive the non-standard
population
- Social trends also play a key role in driving the non-standard
population
- The non-standard population will rise gradually to 9.42 million by 2010
- Overview of the UK consumer credit market in 2005
- The consumer credit market delivered a subdued performance in 2005
- Bad debts are on the rise as consumer debt continues to creep upwards
- Consumer debt continued its ascending trend in 2005
- Lenders are now feeling the strain as bad debts are rising
- The non-standard motor finance market
- Non-standard motor finance continued to fall in 2005
- For many providers, the non-standard motor finance market is not an
easy space to be in at present
- Yet the non-standard market is likely to grow in the future
- The home collected credit market
- While the market grew in 2005, providers nevertheless experienced
another difficult year
- Home collected credit balances outstanding reached £1.2 billion in
2005, but the market remains sluggish
- The home collected credit market continues to be dominated by the
'big four'
- In addition, the home collected credit market is under increased
pressure from regulation
- Most recently, the Competition Commission found that the market was
uncompetitive and needed improvement
- With a slew of significant changes ahead, providers face a tough
future
- Forecasting the home collected credit market
- The non-standard credit card market
- The market is composed of mainstream and specialist providers
- Barclaycard, Capital One, Citibank, HSBC, and RBS are all active in
this market
- Specialist issuers target the lower end of the non-standard spectrum
- The non-standard market became more difficult for mainstream lenders
in 2005
- Growth was not as strong in the non-standard credit card market in
2005 as the previous year
- Mainstream lenders tightened their lending criteria but many still
saw bad debts surge
- Sub-prime specialist lenders are benefiting as a result
- Datamonitor forecasts strong growth in the non-standard credit card
market
- CHAPTER 2 INTRODUCTION
- What is this report about?
- Who is the target reader?
- How do use this report?
- CHAPTER 3 SIZING THE UK NON-STANDARD POPULATION IN 2005
- Introduction
- Defining the non-standard population
- Lending products: altering the dynamics of demand and supply
- Subjectivity is a necessary evil
- Alternative commonly used terms
- Sub-prime is a segment of non-standard
- Report coverage: age and affordability
- Datamonitor estimates that the non-standard population stood at 9.1
million in 2005
- A combination of macro-economic and social factors is responsible for a
declining non-standard population in recent years
- Underlying macro-economic factors ultimately drive the non-standard
population
- Unemployment is now rising
- Interest rates play a pivotal role in driving the non-standard
population
- Mortgage arrears and repossessions have risen recently
- 2005 witnessed the first rise in registered CCJs in fifteen years
- Personal bankruptcies hit a record high in 2005
- Social trends also play a key role in driving the non-standard
population
- According to Datamonitor's estimations, just over two million
individuals were without a bank account in 2005 in the UK
- Self-employment numbers have been increasing particularly strongly
in recent years
- The number of income support recipients has fallen moderately
- The non-standard population will rise gradually to 9.42 million by 2010
- CHAPTER 4 OVERVIEW OF THE UK CONSUMER CREDIT MARKET IN 2005
- Introduction
- The consumer credit market delivered a subdued performance in 2005
- Consumer credit balances outstanding continued to grow in 2005 but
gross advances dropped slightly
- In terms of balances outstanding, cards and loans account for the bulk
of consumer credit
- Credit card and unsecured personal loan balances outstanding increased
in 2005, albeit at a slower rate
- On the whole, unsecured personal loans have gained market share while
credit cards have lost share
- In terms of gross advances, credit cards were the hardest hit in 2005
- Yet credit cards have grown their market share most since 2001
- Bad debts are on the rise as consumer debt continues to creep upwards
- Consumer debt continued its ascending trend in 2005
- Lenders are now feeling the strain as bad debts are rising
- Consequently, some lenders are introducing measures to manage bad
debts and improve the quality of their unsecured lending book
- In addition, PPI is under investigation
- The PPI market is facing increased scrutiny from regulatory bodies
- PPI is an important income stream for prime and non-standard lenders
- PPI is a lucrative business for banks
- Hence, increased regulatory pressure in the PPI sector may see lenders
lose in terms of profitability
- For more information....
- CHAPTER 5 THE NON-STANDARD MOTOR FINANCE MARKET
- Introduction
- The total UK motor finance market faced another difficult year in 2005
- The motor finance sector continued to struggle in 2005
- Balances outstanding in the point of sale new car finance market
declined in 2005
- Gross lending in both the used car and new car finance markets fell
in 2005
- Hire purchase agreements in both the new and used car finance
markets had a difficult year in 2005
- A number of factors account for this decline
- Car sales have not performed well over the past five years and
declined again in 2005
- Average car prices have fallen in the long-term
- There is evidence that the poor performance of the point of sale
motor finance sector is a long-term issue of falling penetration, rather
than cyclical movement
- Non-standard motor finance continued to fall in 2005
- Datamonitor uses five steps to size the value of the non-standard
motor finance market
- Step 1: Estimating the size of the non-standard population and the
number of non-standard households in the UK
- Step 2: Estimating the level of car ownership among non-standard
households
- Step 3: Splitting total non-standard car purchases into new and used
cars
- Step 4: Calculating total non-standard car purchases
- Step 5: Estimating the size of the non-standard motor finance market
- The non-standard motor finance market experienced another decrease in
2005
- The non-standard motor finance market has put in a poor performance
in recent years, even in comparison to the mainstream market
- There are a number of explanations as to why the non-standard market
performed so badly over the past five years
- For many providers, the non-standard motor finance market is not an easy
space to be in at present
- Non-standard lenders are being squeezed by competition
- There are a number of different business models in the non-standard
motor finance market
- Squeezed by captives and direct providers, independents have had to
explore new markets, such as the non-standard sector
- Direct providers continue to offer another competitive threat
- Yet those providers supplying both cars and finance also suffered at
the hands of competition in 2005
- Yes Car Credit's closure also raises the question of viability for
similar providers
- Rising bad debt has hit many providers
- Moreover, regulation has also dented profits
- Motor financiers are losing income because of outdated regulations
on voluntary terminations
- Changes in early settlement rules have affected point of sale motor
finance providers' profits
- Moreover, the amended CCA has led to a longer sales process
- PPI income has fallen following the new FSA regulations
- Yet providers continue to invest in the market, showing that it remains
attractive to some
- New entrants have come into the market
- Blue Motor Finance entered the market in January 2006
- Provident Financial launched yesinsurance.co.uk in August 2005
- Santander Consumer Finance UK launched into the prime motor finance
market
- Lenders are investing in technology in order to differentiate
themselves from competitors
- Providers are investing in decision systems in order to gain business
- In addition, some non-standard lenders are now investing more in the
Internet
- Indeed, the non-standard market is likely to grow in the future
- Datamonitor's methodology quantifies motor finance penetration among
non-standard consumers
- In Datamonitor's opinion, the non-standard motor finance market will
grow at a quicker rate over the next five years than it has over the
previous five years
- Non-standard motor finance gross advances will increase by an
average of 4.3 per cent each year to 2010
- Under a best case scenario for the future of the UK economy, the
non-standard motor finance market will struggle compared to the market as
a whole
- Non-standard motor finance market is forecasted to perform slightly
worse under these assumptions
- Under a worst case scenario, the non-standard motor finance market
will perform well
- Non-standard motor finance gross advances will increase by 7.1 per
cent per year under a worst case scenario
- CHAPTER 6 THE HOME COLLECTED CREDIT MARKET
- The non-standard unsecured personal loans market has grown rapidly in
recent years, but the sub-prime element is still very small
- The home collected credit market is a sub-sector of the non-standard
unsecured personal loans market
- Sizing the non-standard unsecured personal loans market
- The non-standard unsecured personal loans market is worth £27.3 billion
- Much of the market is composed of self-employed individuals, rather
than sub-prime individuals
- While the home credit market grew in 2005, providers nevertheless
experienced another difficult year
- Datamonitor's methodology for sizing the home collected credit market
is based on two measures
- Please note that accounting standards have changed since the last
publication of this report, causing some market figures to change
- Home collected credit balances outstanding reached £1.2 billion in
2005, but the market remains sluggish
- Indeed, lenders found 2005 yet another very difficult year
- Such a lackluster performance is reinforced when compared to that of
the non-standard unsecured personal loans market
- The home collected credit market continues to be dominated by the 'big
four'
- However, the big four's share of the market has decreased over the
past five years
- But the big four have maintained their position at the top for many
years
- Many providers have struggled in recent years
- A number of factors have made for a tougher market
- The market has become increasingly mature
- Home credit providers have seen an increase in bad debts
particularly over 2005
- Customers increasingly depend on more than one provider for their
credit needs
- In addition, regulation has made it more expensive to operate in the
market
- As a result, the major lenders continue to reduce their exposure to
the market
- Provident continues to diversify into other non-standard credit
markets
- S&U continues to diversify its non-standard consumer credit
portfolio
- Meanwhile, Cattles is focusing upon building up its direct repayment
division
- London Scottish is also moving away from its door-to-door lending
business
- In addition, the home collected credit market is under increased
pressure from regulation
- The home collected credit market has received a large amount of
regulatory scrutiny in recent years
- 2003 saw the first damning report on home collected credit appear
- The market also falls under the Consumer Credit Bill
- In addition, the market is now under scrutiny by the Competitition
Commission
- Most recently, the Competition Commission found that the market was
uncompetitive and needed improvement
- The Competition Commission found a number of negative
characteristics prevalent in the market
- The Competition Commission's possible remedies include data sharing
and providing price information
- The CC will consult with lenders before publishing its final report
in July
- With a slew of significant changes ahead, providers face a tough
future ahead
- The industry feels that regulation simply poses too much of an
administrative and financial burden
- Many believe that small to medium sized providers are beginning to
leave the market
- In the end, it could be that consumers pay the highest price
- Yet besides credit cards, other external sources of credit remain a very
limited threat to the home collected credit market
- Government initiatives still pose little competitive threat
- There are a number of Government initiatives to assist the
financially excluded and to lessen their reliance on home collected
credit
- Overdrafts and basic bank accounts to non-standard individuals are not
a replacement to home credit
- Credit unions do not pose a real competitive threat just yet
- However, alternative commercial sources of credit have the potential
to pose greater competitive threat
- Payday loans could potentially offer a greater competitive threat in
the future
- Cheque cashers represent a limited threat
- Pawnbrokers are a threat of sorts
- Forecasting the home collected credit market
- Datamonitor's methodology calculates home collected credit's
penetration of the non-standard population
- In Datamonitor's opinion, the UK home collected credit market will
grow at a very slow pace
- According to Datamonitor's neutral forecasting scenario, the home
collected credit market will grow on average by 1.1 per cent each year
to 2010
- Under a best case scenario for the future of the UK economy, the home
collected credit market is forecasted to decline significantly
- Under Datamonitor's optimistic forecasting scenario, the home
collected credit market will decline on average by 3.0 per cent each
year to 2010
- However, should the economy take a real turn for the worse, the home
collected credit market will reap the benefits
- Under the pessimistic forecasting scenario, the home collected
credit market will grow on average by 3.3 per cent each year to 2010
- CHAPTER 7 THE NON-STANDARD CREDIT CARD MARKET
- Unlike the mainstream credit card market, the non-standard market
provides clear opportunities for growth
- Saturation and competition in the mainstream market have made the
relative profitability of this segment even greater
- This competitive pressure has driven down price and, with it, issuer
margins
- Mainstream issuers stand to benefit from a combination of higher
margins, revenues and future cross-sales
- Non-standard credit card lending accounted for 9.9 million cards in
issue in 2005
- Datamonitor's estimation methodology
- The non-standard credit card market accounts for 13.7 per cent of
the total UK credit card market
- The self-employed population accounts for over half of the
non-standard credit card market
- The rest of the non-standard market is divided unevenly among the
remaining groups
- The non-standard credit card market amounted to £12.6 billion in 2005
- Datamonitor's estimation methodology
- Datamonitor estimates that the non-standard credit card market was
worth £12.6 billion in 2005
- The majority of this is accounted for by the self-employed
- The market is composed of mainstream and specialist providers
- Barclaycard, Capital One, Citibank, HSBC, and RBS are all active in
this market
- Several mainstream players have acquired specialist lenders in order
to gain the expertise needed to issue in this market
- There are several advantages to this approach, as compared to direct
market entry
- Mainstream players have used different branding strategies to enter
this market
- Market entry through a subsidiary allows mainstream issuers to
protect their prime brand/s
- However, Capital One and Citibank have stayed faithful to their
prime brands
- Other specialist issuers target the lower end of the non-standard
spectrum
- Profile: SAV Credit
- Profile: Vanquis Bank
- The non-standard market became more difficult for mainstream lenders in
2005
- Growth was not as strong in the non-standard credit card market in
2005 as in the previous year
- Mainstream lenders tightened their lending criteria but many still saw
bad debts surge
- Sub-prime specialist lenders are benefiting as a result
- For example, Vanquis has continued to grow rapidly
- SAV Credit also continues to expand
- As a result, sub-prime specialist providers are confident about the
future
- It is likely that other firms will eventually enter the non-standard
market
- MasterCard launched a pre-paid card targeting the UK sub-prime
market in September 2005
- Datamonitor forecasts strong growth in the non-standard credit card
market
- Datamonitor's five-year forecast for the non-standard credit card
market
- Datamonitor's estimation methodology
- Datamonitor forecasts the non-standard credit card market to be
worth £17.5 billion in 2010
- Growth will be fastest among those with checkered or limited credit
histories
- A number of factors are forecast to drive growth in the non-standard
credit card market
- CHAPTER 8 APPENDIX
- Supplementary data
- Data tables relating to Chapter 3: Sizing the UK Non-standard
Population in 2005
- Data tables relating to Chapter 4: Overview of the UK Consumer Credit
Market in 2005
- Data tables relating to Chapter 5: The Non-standard Motor Finance
Market
- Data tables relating to Chapter 6: The Home Collected Credit Market
- Data tables relating to Chapter 7: The Non-standard Credit Card Market
- Definitions
- AAGR
- Balances outstanding
- CAGR
- Exclusive distribution
- Gross advances
- Hire purchase
- Installment credit
- Intermediaries or purchasing agents
- Leasing
- Mail order
- Personal Contract Purchase (PCP)
- Personal Loans (PoS)
- Retail finance
- Selective distribution
- Store cards
- Unsecured personal loan
- Research methodology
- Relevant readings
- Future readings
- Relevant links
- Datamonitor's custom research capabilities
- The Retail Banking team
- How to contact experts in your industry
- List of Tables
- Table 1: Balances outstanding and gross advances in the consumer
credit market, 2001-2005
- Table 2: Balances outstanding and gross advances in the consumer
credit market, 2001-2005
- Table 3: Consumer credit balances outstanding by product, 2001-2005
- Table 4: Market share of consumer credit balances outstanding by
product line, 2001-2005
- Table 5: Consumer credit gross advances split by product, 2001-2005
- Table 6: Market share of gross advances in the consumer credit market
by product line, 2001-2005e
- Table 7: Consumer debt write-offs by banks by lending type, 2004-05
- Table 8: New car finance gross advances by product line, 2001-2005
- Table 9: Used car finance gross advances by product line, 2001-2005
- Table 10: New and used private car sales in the UK, 2001-2005
- Table 11: Responses to the question 'was the car you bought or leased
new or used' by socio-economic group, 2001
- Table 12: Number of non-standard car sales, 2001-2005
- Table 13: New, used and total cars sold to non-standard buyers,
compared to all car buyers, 2001-2005
- Table 14: Used car sales by channel, 2001-2005
- Table 15: Value of the market for non-standard point-of-sale motor
finance (in terms of gross advances), 2001-2005
- Table 16: Forecasted non-standard motor finance market gross advances
compared to total motor finance market gross advances under Datamonitor's
neutral scenario, 2004-2009f
- Table 17: Forecasted non-standard motor finance market gross advances
compared to total motor finance market gross advances under a best case
scenario, 2005-2010f
- Table 18: Forecasted non-standard motor finance market gross advances
compared to total motor finance market gross advances under a worst case
scenario, 2005-2010f
- Table 19: UK home collected credit balances outstanding by competitor,
2001-2005e
- Table 20: Administrative timetable for the Competition Commission's
inquiry into the home collected credit market, 2006
- Table 21: SAV Credit fact file, 2006
- Table 22: Vanquis Bank fact file, 2006
- Table 23: UK non-standard population, 2001-2005e
- Table 24: UK Non-standard population forecasts according to
Datamonitor's neutral scenario, 2005e-2010f
- Table 25: Debt write-offs by banks (individuals), Q1 2004-Q4 2005
- Table 26: New and used car motor finance balances outstanding,
2001-2005
- Table 27: New and used car motor finance gross advances, 2001-2005
- Table 28: Used cars sales by distribution channels, 2001-2005
- Table 29: Mainstream and non-standard unsecured personal loan gross
advances and balances outstanding, 2001-2005
- Table 30: The home collected credit market gross advances and balances
outstanding, 2001-2005
- Table 31: Non-standard unsecured personal loans and home collected
credit balances outstanding, 2001-2005
- Table 32: Estimated market share of the four leading providers in the
home collected credit market, 2000-2004
- Table 33: Indexed balances outstanding of the leading home collected
credit providers, 2001-2005
- Table 34: Compound annual growth in gross advances by lending product,
2001-2005
- Table 35: Balances outstanding by division, Provident Financial,
2002-2005
- Table 36: Gross customer account receivables and estimated home
collected credit balances outstanding, Cattles, 2001-2005
- Table 37: Indexed customer credit receivables by type of repayment,
Cattles, 2002-2005
- Table 38: London Scottish gross customers' account receivables and
estimated home collection balances outstanding, 2001-2005
- Table 39: Datamonitor's neutral forecasts for the home collected
credit market, 2005-2010f
- Table 40: Datamonitor's optimistic forecasts for the home collected
credit market, 2005-2010f
- Table 41: Datamonitor's pessimistic forecasts for the home collected
credit market, 2005-2010f
- Table 42: Estimated number of cards in issue and average number of
cards per person for the non-standard population by reason of being
non-standard, 2005e
- Table 43: Estimated size of the UK non-standard credit card market,
segmented by individuals that are self-employed with no other reason to be
non-standard and other non-standard, 2003e-2005e
- Table 44: Consumer debt write-offs by banks by lending type, 1996-2005
- Table 45: Forecast size of the UK non-standard credit card market,
segmented by individuals that are self-employed with no other reason to be
non-standard and other non-standard, 2005e-2010f
- List of Figures
- Figure 1: The UK non-standard population continues to decline, falling
to an estimated 9.1 million in 2005, 2001-2005e
- Figure 2: According to Datamonitor's neutral forecast, the
non-standard population will gradually increase to 9.42 million by 2010,
2005e-2010f
- Figure 3: Balances outstanding in the consumer credit market continued
to grow but gross advances fell slightly in 2005, 2001-2005
- Figure 4: The average consumer debt increased by 5.0 per cent to
£4,122 in 2005, 2001-2005
- Figure 5: Unsecured debt write-offs have accelerated in 2005, 2004/05
Q1 - 2004/05 Q4
- Figure 6: The value of point of sale motor finance extended to
non-standard buyers has fallen considerably over the last five years,
2001-2005
- Figure 7: According to Datamonitor's assumptions, the non-standard
motor finance market will grow on average by 4.3 per cent each year under
this scenario, 2005-2010f
- Figure 8: On the whole, both gross advances and balances outstanding
have stagnated in the home collected credit market in recent years, though
2005 saw a small lift, 2001-2005
- Figure 9: Under Datamonitor's neutral scenario, the home collected
credit market is forecasted to grow by an average of 1.1 per cent each
year to 2010, 2005-2010f
- Figure 10: The non-standard credit card market experienced growth in
2005, but not as much as the previous year, 2003e-2005e
- Figure 11: Datamonitor covers the non-standard and sub-prime lending
market in 2006 with a suite of three published reports
- Figure 12: Datamonitor's definition of non-standard
- Figure 13: A certain degree of subjectivity is needed in a definition
of the non-standard population because some mainstream lenders are
inevitably willing to accept greater risk than others
- Figure 14: Common terms used to refer to the circumstance defined by
Datamonitor as "non-standard"
- Figure 15: Sub-prime consumers represent a segment of the non-standard
population
- Figure 16: The UK non-standard population continues to decline,
falling to an estimated 9.1 million in 2005, 2001-2005e
- Figure 17: According to Datamonitor's neutral forecast, the
non-standard population will gradually increase to 9.42 million by 2010,
2005e-2010f
- Figure 18: Balances outstanding in the consumer credit market
continued to grow but gross advances fell slightly in 2005, 2001-2005
- Figure 19: Unsecured personal loans were the fastest growing product
line in balances outstanding over the last five years, 2001-2005
- Figure 20: Unsecured personal loans gained an estimated 5.8 percentage
points, whereas credit cards lost share from 2001 to 2005, 2001-2005
- Figure 21: A flat performance for credit cards in 2005 in terms of
gross lending, whereas overdrafts continued to thrive, 2001-2005
- Figure 22: Credit cards has grown its market share by 5.6 percentage
points from 2001 to 2005 in gross advances, 2001-2005e
- Figure 23: The average consumer debt increased by 5.0 per cent to
£4,122 in 2005, 2001-2005
- Figure 24: Unsecured debt write-offs have accelerated in 2005, 2004/05
Q1 - 2004/05 Q4
- Figure 25: Outstanding balances in both new and used car finance fell
in 2005, 2001-2005
- Figure 26: Gross lending in both the new and used car finance markets
declined in 2005, 2001-2005
- Figure 27: Although still the dominant finance product in the new car
finance market, gross advances for hire purchase continue to fall,
2001-2005
- Figure 28: Hire purchase remains by far the dominant product line in
the used car finance market, 2001-2005
- Figure 29: New and used car sales both fell in 2005 and have put in
poor performances over the past five years, 2001-2005
- Figure 30: Private used car sales amounted to 3.5 million out of a
total 7.5 million used car sales in the UK in 2005, 2001-2005
- Figure 31: Average new and used car prices have fallen since 2001,
2001-2005
- Figure 32: The performance of the motor finance market is related to
the volume of cars sold, 2001 to 2005e
- Figure 33: FLA data shows that penetration of point of sale motor
finance is declining, 1997 and 2005
- Figure 34: Datamonitor's methodology for estimating the size of the
non-standard motor finance market
- Figure 35: Methodology used to calculate the number of non-standard
households in the UK
- Figure 36: The self-employed population account for almost 43 per cent
of all non-standard households with access to a car, 2005
- Figure 37: Car sales to non-standard individuals relative to the
market as a whole recovered somewhat over 2005, 2001-2005e
- Figure 38: The value of point of sale motor finance extended to
non-standard buyers has fallen considerably over the last five years,
2001-2005
- Figure 39: The non-standard motor finance market has failed to recover
from the slump of 1999-2000, 1999-2005
- Figure 40: Motor finance providers differentiate themselves according
to distance from point of sale and exposure to credit risk, 2006
- Figure 41: Provident's new yesinsurance.co.uk website
- Figure 42: Qualitative assumptions behind Datamonitor's neutral
forecasting scenario
- Figure 43: According to Datamonitor's assumptions, the non-standard
motor finance market will grow on average by 4.3 per cent each year under
this scenario, 2005-2010f
- Figure 44: Qualitative assumptions behind Datamonitor's optimistic
forecasting scenario
- Figure 45: According to this scenario, the non-standard motor finance
market will record average growth of 2.8 per cent per year but perform
worse than the mainstream motor finance market, 2005-2010f
- Figure 46: Qualitative assumptions behind Datamonitor's pessimistic
scenario
- Figure 47: Under the pessimistic scenario, the non-standard motor
finance market is forecasted to account for an increasingly bigger slice
of the total market, 2005-2010f
- Figure 48: The non-standard unsecured personal loans market is more
evenly distributed among the different sub-groups of the non-standard
population than that witnessed in other non-standard lending markets, 2005
- Figure 49: The non-standard sector now accounts for 27.2 per cent of
the total UK unsecured personal loan market, 2001-2005
- Figure 50: On the whole, both gross advances and balances outstanding
have stagnated in the home collected credit market in recent years, though
2005 saw a small lift, 2001-2005
- Figure 51: The non-standard personal loan market has far outpaced the
home collected credit market in terms of balances outstanding growth,
2001-2005
- Figure 52: While the market share of the 'big four' has slipped, they
still account for over 80 per cent of the total market, 2005e
- Figure 53: Together, the big four have lost market share over the past
five years to providers populating the rest of the market, 2001 & 2005
- Figure 54: The two biggest home collected credit providers struggled
during the past couple of years, particularly Cattles, 2001-2005
- Figure 55: Compared to other lending markets, the home collected
market failed to record any growth at all over the last five years,
2001-2005
- Figure 56: Provident's international home collected credit division
and Vanquis Bank have recorded the biggest increases in balances
outstanding, 2002-2005
- Figure 57: Cattles is reducing its home collected credit balances
while expanding in other credit markets, 2001-2005
- Figure 58: There has been a notable shift in Cattles' customer credit
receivables away from home collected credit to direct repayment, 2002-2005
- Figure 59: The average advance and the number of Cattles' home
collected credit customers has been decreasing steadily in recent years,
2003-2005
- Figure 60: On the whole, the proportion for which home collection
accounts for London Scottish's total customer receivables has decreased,
2001-2005
- Figure 61: Some of the current legislative requirements affecting the
home collected credit market, 2006
- Figure 62: Qualitative assumptions behind Datamonitor's neutral
forecasting scenario, 2001-2010f
- Figure 63: Under Datamonitor's neutral scenario, the home collected
credit market is forecasted to grow by an average of 1.1 per cent each
year to 2010, 2005-2010f
- Figure 64: Qualitative assumptions behind Datamonitor's optimistic
forecasting scenario, 2001-2010f
- Figure 65: According to Datamonitor's optimistic scenario, the home
collected credit market is forecasted to decline by 3.0 per cent each year
to 2010, 2005-2010f
- Figure 66: Qualitative assumptions behind Datamonitor's pessimistic
forecasting scenario, 2001-2010f
- Figure 67: According to Datamonitor's pessimistic scenario, the home
collected credit market is forecasted to grow on average by 3.3 per cent
each year to 2010, 2005-2010f
- Figure 68: Heavy competition in the UK credit card market has driven
down standard and introductory APRs, Jan 1998-Feb 2006
- Figure 69: The non-standard credit card market remains far less
developed than the mainstream market, 2004e-2005e
- Figure 70: There is now slightly more than one credit card in issue
per non-standard individual, 2004e-2005e
- Figure 71: The self-employed population accounts for over half of the
credit cards in issue to the non-standard population, 2005e
- Figure 72: The unemployed have the lowest level of cardholding per
head, while those in full time employment enjoy the highest, 2005e
- Figure 73: The total non-standard credit card market was worth £11.9
billion in 2004e, 2003e-2005e
- Figure 74: Four of the top seven largest issuers in the UK market are
currently active in the non-standard market, 2006
- Figure 75: Mainstream issuers entering the non-standard market have
employed one of two branding strategies
- Figure 76: The non-standard credit card market experienced growth in
2005, but not as much as the previous year, 2003e-2005e
- Figure 77: Debt write-offs have particularly affected the credit card
market, 1996-2005
- Figure 78: Datamonitor forecasts the non-standard credit card market
to continue to grow over time, with transaction values reaching £16.7
billion in 2009f, 2004e-2009f
- Figure 79: Datamonitor's core consulting capabilities
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