Abstract
Introduction
The UK unsecured personal lending market continued to struggle during 2008.
The difficult conditions saw more lenders leaving the market and competition
levels declining as the focus was on retaining good customers. As a result,
average interest rates continued to climb.
Scope of this research
- Provides market shares of balances outstanding and gross advances for
major UK personal loan players
- Provides advertising spend for the top personal loan providers.
- Analyzes the key competitive developments in the UK market over the last
12 months.
Research and analysis highlights
The competitive landscape in unsecured personal lending remains subdued.
Lenders are looking to retrench towards their existing customer base to
effectively ride out the storm. This unwillingness to take on risky business
has meant that competitive dynamics are fairly minimal as lenders wait for the
market to recover.
In June 2008, there were 46 lenders offering unsecured personal loans, down
from 58 in June 2007. However, by June 2009 this number had dropped further to
just 37. Lenders felt that the volatile market had exposed those with weak
business models.
High impairment levels and the FSA' s ruling that single premium payment
protection insurance (PPI) should no longer be sold with a loan have presented
difficulties for lenders. While neither problem is insurmountable, the two
issues represent a drain on income which they are slowly overcoming. In
addition, further PPI rulings are possible.
Key reasons to purchase this research
- Gain an insight into the performance of your competitors.
- Understand how the market is changing and evaluate what opportunities
might arise from these changes.
- Learn how your competitors are adapting their strategies to the current
economic climate.
| 
View Cart
