Since the start of the credit crunch, innovation in the UK unsecured personal loan market has been minimal compared to other countries. 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.
Highlights of this title
Banks in Asia offer loans that can be secured against non-property assets, such as equities and gold. These loans can act as a halfway house between unsecured loans and loans secured against property, offering benefits to both lenders and borrowers.
In the current climate, there is an increased risk of defaults on loans. EON Bank of Malaysia offers a loan that incentivizes prompt repayment by giving a discount of 1% of the sum advanced and penalizes late payments by adding a 1% levy.
Twitter offers banks the chance to re-engage with their customers. Bank of America has set up a Twitter feed that acts as a helpdesk, where customers can register their enquiries, and receive a response from the bank. This initiative has been well received, and can serve as a template for UK banks seeking to rebuild their reputations.
Key reasons to purchase this title
- 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.
