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United Kingdom Non-Prime Consumer Credit Market Report 2021: Review of the Non-prime, or High-interest, Consumer Credit Market

Research and Markets
·5-min read

Dublin, Jan. 13, 2021 (GLOBE NEWSWIRE) -- The "UK Non-Prime Consumer Credit: Market Insight Report 2021" report has been added to ResearchAndMarkets.com's offering.

Review of the non-prime, or high-interest, consumer credit market. It describes the market for consumer credit agreements with average fixed interest rates over 30% per year, and profiles the main lenders involved in it.

It includes:

  • Review of each of the segments in the market

  • Discussion of key segment issues including the impact of regulation, and sets out the estimates of historical and forecast growth for each.

  • A set of 40 lender profiles of those active in the sector, covering financial performance, ownership, loan products offered, market positioning, corporate activity and history of the lender.

Covers the following segments and lenders operating within them:

  • Guarantor finance (key providers include Amigo loans and Non Standard Finance's Trust Two and George Banco)

  • High Cost Short Term Credit (following the exit of the majority of the largest firms in the past two years, key providers include Gain Credit and My Jar)

  • Home-collected credit (key providers include Morses Club, Non-Standard Finance and Provident)

  • Instalment credit (key providers include Non-Standard Finance's Everyday Loans, Oakbrook Finance, Darwin and Oplo)

  • Motor finance (key providers include S&U plc's Advantage, Provident's Moneybarn, First Response and Startline)

  • Credit card and other revolving loans (key providers include CapitalOne, NewDay and Provident's Vanquis)

  • Pawn broking (key providers include H&T Group and Ramsdens Financial)

  • Logbook loans (key providers include Loans2Go, Greenlight Credit, and Norfolk Capital's Mobile Money)

  • Rent-to-own (following the exit of Brighthouse, key providers include Temple Finance and Mutual)

Who is the report intended for?

  • Operators of of non-prime businesses themselves

  • Investors in these businesses

  • Retailers

  • Market regulators and policymakers

  • Banks, analysts, consultants and other parties with interests in the sector

What are the sources and methodology?

  • Interviews with senior-level contacts in the consumer credit industry

  • In-depth analysis of the macroeconomic environment and relevant market drivers

  • Financial analysis of the accounts of companies in the industry

  • Information from these sources has been synthesised and presented clearly and concisely with extensive use of charts and tables to illuminate points and support conclusions

  • Market forecasts have been constructed using simple assumptions which are clearly stated. Supporting evidence is provided for the assumptions but readers can flex them where required to model alternative scenarios.

Key Topics Covered:

Summary

  • Market background

Market size and growth

About the Publisher

  • Company background

  • Consulting services

  • Commercial/operational due diligence

  • Custom market analysis

  • Primary research

  • Growth strategy

  • Related research

  • Research subscriptions

About the Publisher: example consumer credit research and consulting clients

Contents

  • List of Charts and Tables

  • Non-prime consumer credit market

  • Definition

  • Number of non-prime consumers

  • Non-prime consumer credit market segments

  • Market growth

  • Non-prime consumer credit segments

1. Guarantor Finance

  • Definition

  • Key players

  • Sector size

  • Sector trends

2. High Cost Short Term Credit (HCSTC)

  • Definition

  • Key players

  • Sector size and trends

  • Insight: Price cap makes traditional payday loans unprofitable

3. Home-collected Credit

  • Definition

  • Key players

  • Sector size

  • Sector trends

4. Installment Credit

  • Definition

  • Key players

  • Sector size

  • Sector trends

5. Motor finance

  • Definition

  • Significant players

  • Sector size and trends

  • Sector trends

  • Insight: Non-prime credit accounts for small part of car finance market

6. Credit cards and other revolving Loans

  • Definition

  • Key players

  • Sector size

  • Sector trends

7. Pawnbroking

  • Definition

  • Significant players

  • Sector size

  • Sector trends

8. Logbook loans

  • Definition

  • Significant players

  • Sector size

  • Sector trends

9. Rent-to-own

  • Definition

  • Significant players

  • Sector size

  • Sector trends

  • Insight: Non-prime finance slowly departs the high street

  • Alternatives

  • Credit unions

  • Community Development Finance Institutions

  • Fintech solutions

  • Government alternatives

  • Unauthorised lenders

Forecasts

  • High Cost Short Term Credit (HCSTC)

  • Home-collected credit

  • Installment credit including some second-charge mortgages

  • Motor finance

  • Credit card and other revolving loans

  • Pawnbroking

  • Logbook loans

  • Rent-to-own

  • Drivers of Non-Prime Credit Usage

1. Economic growth

2. Consumer borrowing

3. Unemployment and underemployment

4. Wage growth and the impact of benefit policies

5. Levels of self-employment and trade union membership

6. Housing costs

7. Access to mainstream finance

8. Personal insolvency and bankruptcy

9. Other poverty indicators: food bank usage and rough sleeping

  • Non-Prime Credit Regulation

  • FCA regulation

  • Insight: Affordability regulation is key to the market

  • FOS complaints/losses

  • Financial performance of lenders

  • Productivity analysis

  • Firms leaving non-prime consumer credit

Major lenders (loan books >20m)

  • 1stStop

  • Advantage Finance

  • Amigo Loans

  • Avant Credit

  • Bamboo

  • Billing Finance

  • Blue Motor

  • Capital One

  • CashEuroNet UK (Enova)

  • Caversham Finance (Brighthouse)

  • Darwin loan solutions (Evolution, Progressive)

  • DJS (UK)

  • Elevate Credit International (Sunny)

  • First Response

  • Gain Credit

  • H & T Group PLC (Harvey & Thompson)

  • Indigo Michael (Safety Net Credit)

  • Madison CF UK (118 118 Money)

  • Marsh

  • Morses Club

  • Mutual

  • MYJAR

  • New Day

  • Norfolk Capital

  • Oakbrook Finance

  • Private & Commercial

  • Provident

  • Startline

  • Temple Finance

Other lenders (loan books 5m to 20m)

  • Active Securities

  • Cash on Go

  • Ferratum UK

  • Go Car Credit

  • Greenlight Credit

  • Instant Cash Loans

  • Loans2Go

  • Mallard Leasing

  • PDL Finance

  • Premium Plan

  • Ramsdens Financial

  • Speedloan Finance

  • Think Money

  • Uncle Buck Finance LLP

  • Valour Finance

For more information about this report visit https://www.researchandmarkets.com/r/mrds6j

Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.

CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood, Senior Press Manager press@researchandmarkets.com For E.S.T Office Hours Call 1-917-300-0470 For U.S./CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900