Abstract
Overview
Introduction
The commoditized nature of unsecured personal loans has stifled the innovation
process in the UK. This brief looks at unsecured personal loan innovations
from abroad and assesses their potential in the UK market.
Scope
- Examples of unsecured personal loan innovations from around the world
- Expert opinion on the suitability of different personal lending
innovations for the UK market
- A look at how loan providers are adapting products to fit with changing
global concerns
Report Highlights
Despite the launch of Shariah banking in the UK, unsecured personal loans are
not yet widely available under Shariah Law. In Dubai however, banks are
careful to ensure that they offer loans that are consistent with the
principles of Shariah Law.
Mobile banking in the UK is still a very marginal activity, with only about
25,000 using mobile banking network Monilink in 2007. Mobile technology is
unlikely to be used unless it is free and if it is free then the provider will
bear the cost. This explains in part why mobile banking has yet to take off in
the UK.
In Dubai, bundling other financial products with an unsecured personal loan is
a popular strategy to attract customers. HSBC UAE is offering a current
account with its usual minimum balance requirement waived and a free credit
card for one year with its flexible personal unsecured loan.
Reasons to Purchase
- Gain insight into how innovations in the unsecured loan market abroad
might translate to the UK
- Develop an understanding of the use of new technologies to promote loan
uptake
- Keep up-to-date with the latest product developments in unsecured personal
lending
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