TABLE OF CONTENTS
Overview 1
Catalyst 1
Summary 1
Executive Summary 2
The number of non-standard consumers has been steadily growing 2
Growth in the home credit market has been slow 4
High rates of growth in payday lending are attracting large numbers of new players 5
Market Overview 12
The non-standard population comprises many disparate groups 12
The number of non-standard consumers has been steadily growing 13
The industry has broadly welcomed the findings of recent regulatory investigations 16
Home Credit 21
The main home credit providers have weathered the downturn with varying degrees of success 21
Smaller lenders have managed to maintain market share 25
Some home credit providers have started to offer pre-paid cards 26
Pricing is consistent among the main national players 27
Growth in the home credit market has been slow 28
The outlook for the home credit market over the next few years looks subdued 29
Datamonitor predicts small increases in home credit lending over the next few years 30
Payday Lending 33
Payday lending has grown rapidly over the last few years 33
The payday loans market is less fragmented than appears at first sight 34
High rates of growth in payday lending are attracting large numbers of new players 36
Large numbers of suppliers are likely to enter and exit the market over the next few years 41
Increased variability in income suggests encouraging prospects for future growth 42
Datamonitor expects to see marked growth in payday lending over the next few years 42
Other Non-standard Lending 45
The unsecured loans market has contracted for several years 45
Secured lending has collapsed since the onset of the banking crisis 49
There are now several credit cards specifically aimed at the non-standard market 52
Appendix 55
Supplementary data 55
Definitions 58
Research methodology 58
Further reading 63
Ask the analyst 63
Datamonitor consulting 63
Disclaimer 63
TABLE OF FIGURES
Figure 1: The non-standard population grew to just under seven million by 2009 2
Figure 2: Datamonitor predicts that the non-standard population will rise to just over eight million by 2014 3
Figure 3: Home credit outstanding balances have risen slowly over the last five years 5
Figure 4: A certain degree of subjectivity is required in a definition of the non-standard population because, inevitably, some lenders are willing to accept greater risk than others 13
Figure 5: The non-standard population grew to just under seven million by 2009 14
Figure 6: Datamonitor predicts that the non-standard population will rise to just over eight million by 2014 15
Figure 7: Provident Financial dominates the market with 62% of outstanding home credit balances 22
Figure 8: The LendersCompared site is viewed by more than 100,000 unique visitors every year 26
Figure 9: Rates among the four largest providers are very similar 28
Figure 10: Home credit outstanding balances have risen slowly over the last five years 29
Figure 11: Home credit gross advances will remain relatively flat over the next few years 31
Figure 12: Payday advances are growing at a fast rate 34
Figure 13: Many lenders operate under several different trading names 35
Figure 14: Online payday loans are considerably more expensive than their high street counterparts 37
Figure 15: TxtLoan is rapidly gaining popularity as a means of obtaining instant cash 39
Figure 16: Payday lending gross advances will continue to rise, albeit at a lower rate than in the past 43
Figure 17: Non-standard unsecured lending has declined considerably since 2005 46
Figure 18: Total non-standard outstanding balances have risen every year since 2006 47
Figure 19: Unsecured gross advances will grow at a conservative rate over the next five years 48
Figure 20: Gross advances on secured lending have collapsed since 2006 50
Figure 21: Secured lending gross advances will reach £515m by 2014 51
Figure 22: The number of non-standard credit cards in circulation has been falling since 2008 53
Figure 23: Outstanding balances at Vanquis have grown more than fourfold since 2005 54
TABLE OF TABLES
Table 1: Breakdown of non-standard population 4
Table 2: Breakdown of non-standard population 16
Table 3: Forecast gross advances for home credit (£m), 2010f–14f 32
Table 4: Forecast gross advances for payday loans (£m), 2010f–14f 44
Table 5: Datamonitor forecast for gross advances on mainstream and non-standard lending (£m), 2010f–14f 48
Table 6: The top nine lenders accounted for nearly 90% of secured gross lending in 2008 49
Table 7: Forecast gross advances for secured lending (£m), 2010f–14f 52
Table 8: Size of non-standard population, 2005–09 55
Table 9: Home credit outstanding balances (£m), 2005–09 55
Table 10: Market share of home credit providers, 2005–09 55
Table 11: Payday gross advances (£m), 2005–10f 56
Table 12: Gross advances on mainstream and non-standard unsecured lending (£m), 2005–09 56
Table 13: Balances outstanding on non-standard unsecured lending, 2005–09 56
Table 14: Gross advances for secured lending (£m), 2005–09 57
Table 15: Number of non-standard credit cards in circulation, 2005–10f 57
Table 16: Outstanding balances on non-standard credit cards (£ billion), 2005–10f 57
[Inhaltsverzeichnis ausblenden]
