Abstract
The personal loans market has enjoyed a period of sustained and fairly rapid growth driven by the availability of credit and low interest rates. However, many analysts believe that, with interest rates rising throughout 2007 and the effects of the global ' credit crunch' now being felt in both Republic of Ireland (RoI) and Northern Ireland (NI) economies, this period of cheap and abundantly available credit is over. Indeed, such is the lack of liquidity in the money markets, the decision by both the Bank of England and the European Central Bank to reduce interest rates in late 2007 and early 2008 may have limited impact in spurring growth in the personal loans market.
Key themes of the report:
- The imminent economic slowdown will hit demand for financial products and tighten lending criteria.
- Technology, particularly the Internet, is set to play an ever greater role in the provision of personal loans.
- Governments and consumers are calling for greater transparency and fairness in the consumer credit market.
- Seniors is an underdeveloped market: as younger consumers feel the pinch, could older people be better positioned to borrow money?
- Marketing to new arrivals. Young new immigrants arriving in both NI and RoI are looking for loans to set up home and start businesses. Are they being adequately catered for?
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