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UK Non-Prime Consumer Credit: Market Insight Report

  • ID: 4846231
  • Report
  • Region: United Kingdom
  • 92 Pages
  • Apex Insight
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FEATURED COMPANIES

  • 1st Stop
  • Billing Finance
  • Ferratum UK
  • Loans2Go
  • New Day
  • Provident
  • MORE

This review of the non-prime or high-interest, consumer credit market 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 (see below)
  • Discussion of key segment issues including the impact of regulation, and sets out our estimates of historical and forecast growth for each.
  • A set of 45 lender profiles of those active in the sector, covering financial performance, ownership, loan products offered, market positioning, corporate activity and history of the lender.

The review covers the following segments and lenders operating within them:

  • Guarantor finance (key providers include Amigo loans, Bamboo, and Non Standard Finance’s Trust Two and George Banco)
  • High Cost Short Term Credit (following the exit of several of the largest firms including WDFC, key providers now include CashEuroNet UK, Elevate Credit, Gain Credit and My Jar)
  • Home-collected credit (key providers include Morses Club, Non-Standard Finance and Provident)
  • Instalment credit including some second-charge mortgages (key providers include Non-Standard Finance’s Everyday Loans, Oakbrook Finance, Madison and Avant)
  • Motor finance (key providers include S&U plc’s Advantage, Blue Motor, Provident’s Moneybarn, and Startline)
  • Credit card and other revolving loans (key providers include CapitalOne, NewDay and Provident’s Vanquis)
  • Pawnbroking (key providers include H&T Group, Ramsdens Financial, and Speedloan Finance)
  • Logbook loans (key providers include Loans2Go, Greenlight Credit, and Norfolk Capital’s Mobile Money)
  • Rent-to-own (key providers include Caversham Finance’s Brighthouse and Temple Finance)

Increasingly, leading providers and their external investors are active in more than one segment

Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • 1st Stop
  • Billing Finance
  • Ferratum UK
  • Loans2Go
  • New Day
  • Provident
  • MORE

1. Non-prime consumer credit market

  • Definition
  • Number of non-prime consumers
  • Non-prime consumer credit market segments
  • Market growth
  • Non-prime consumer credit segments

2. Guarantor Finance

  • Definition
  • Key players
  • Sector size
  • Sector trends

3. High Cost Short Term Credit (HCSTC)

  • Definition
  • Key players
  • Sector size and trends
  • Insight: Price cap makes traditional payday loans unprofitable

4. Home-collected Credit

  • Definition
  • Key players
  • Sector size
  • Sector trends
  • Source: The author's Insight analysis

5. Instalment Credit

  • Definition
  • Key players
  • Sector size
  • Sector trends

6. Motor finance

  • Definition
  • Significant players
  • Sector size and trends
  • Sector trends
  • Insight: Non-prime credit accounts for a small part of the car finance market

7. Credit cards and other revolving Loans

  • Definition
  • Key players
  • Sector size
  • Sector trends

8. Pawnbroking

  • Definition
  • Significant players
  • Sector size
  • Sector trends

9. Logbook loans

  • Definition
  • Significant players
  • Sector size
  • Sector trends

10. 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
  • Instalment credit including some second-charge mortgages
  • Motor finance
  • Credit card and other revolving loans
  • Pawnbroking
  • Logbook loans
  • Rent-to-own

11. Drivers of Non-Prime Credit Usage

  • Economic growth
  • Consumer borrowing
  • Unemployment and underemployment
  • Wage growth and the impact of benefit policies
  • Levels of self-employment and trade union membership
  • Housing costs
  • Access to mainstream finance
  • Personal insolvency and bankruptcy
  • Other poverty indicators: food bank usage and rough sleeping

12. 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

13. Major lenders (loan books >£20m)

  • 1st Stop
  • Ownership
  • Corporate activity
  • Products
  • Advantage Finance
  • Ownership
  • Corporate activity
  • Products
  • Recent information
  • Amigo Loans
  • Ownership
  • Corporate activity
  • Products
  • Recent information
  • Avant Credit
  • Ownership
  • Corporate activity
  • Products
  • Other information
  • Bamboo
  • Ownership
  • Corporate activity
  • Products
  • Billing Finance
  • Ownership
  • Corporate activity
  • Products
  • Other information
  • Blue Motor
  • Ownership
  • Corporate activity
  • Products
  • Recent information
  • Capital One
  • Ownership
  • Products
  • CashEuroNet UK (Enova)
  • Ownership
  • Corporate activity
  • Products
  • Other information
  • Caversham Finance (Brighthouse)
  • Ownership
  • Corporate activity
  • Products
  • Recent information
  • Darwin loan solutions (Evolution, Progressive)
  • Ownership
  • Corporate activity
  • Products
  • Recent information
  • DJS (UK)
  • Ownership
  • Corporate activity
  • Products
  • Recent information
  • Elevate Credit International (Sunny)
  • Ownership
  • Corporate activity
  • Products
  • Recent information
  • First Response
  • Ownership
  • Corporate activity
  • Products
  • Other information
  • Gain Credit
  • Ownership
  • Products
  • H & T Group PLC (Harvey & Thompson)
  • Ownership
  • Corporate activity
  • Products
  • Other information
  • Indigo Michael (Safety Net Credit)
  • Ownership
  • Corporate activity
  • Products
  • Madison CF UK (118 118 Money)
  • Ownership
  • Corporate activity
  • Products
  • Other information
  • Marsh
  • Financials
  • Ownership
  • Corporate activity
  • Products
  • Other information
  • Morses Club
  • Ownership
  • Corporate activity
  • Products
  • Other information
  • Mutual
  • Ownership
  • Corporate activity
  • Products
  • Other information
  • MYJAR
  • Financials
  • Ownership
  • Products
  • Other information
  • New Day
  • Ownership
  • Corporate activity
  • Products
  • Ownership
  • Corporate activity
  • Products
  • Other information
  • Norfolk Capital
  • Ownership
  • Corporate activity
  • Products
  • Other information
  • Oakbrook Finance
  • Ownership
  • Corporate activity
  • Products
  • Other information
  • Private & Commercial
  • Ownership
  • Corporate activity
  • Products
  • Provident
  • Ownership
  • Corporate activity
  • Products
  • Other information
  • Startline
  • Ownership
  • Corporate activity
  • Products
  • Recent information
  • Temple Finance
  • Ownership
  • Corporate activity
  • Products
  • Other information

14. 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

List of Exhibits

  • Non-prime net receivables by sector 2018 (£ million)
  • Growth rates in non-prime receivables 2016-2018 (CAGR)
  • Revenue by non-prime segment 2018 (£ million)
  • New lending by non-prime segment 2018 (£ million)
  • Net receivables by non-prime segment 2018 (£ million)
  • Non-prime consumer credit net receivables - active firms (£ million)
  • Non-prime receivables growth (2016-2018 CAGR %)
  • Guarantor Finance sector key data December 2018 (estimates)
  • HCSTC new lending value (£ billion)
  • HCSTC Finance sector key data December 2018 (estimates)
  • Summary of profitability of HCSTC loans
  • Home Credit lenders revenue
  • Home collected credit sector key data December 2018 (estimates)
  • Instalment credit sector key data December 2018 (estimates)
  • Motor finance sector key data December 2018 (estimates)
  • Used car finance market shares by revenue, 2017
  • Credit cards and other revolving loans sector key data December 2018 (estimates)
  • Pawnbroking key data December 2018 (estimates)
  • Logbook loans key data December 2018 (estimates)
  • Rent-to-own key data December 2018 (estimates)
  • Number of high street stores offering non-prime consumer credit
  • Historical and forecast new non-prime lending by segment/£m
  • Historical and forecast new lending by segment excluding credit cards/ £m
  • UK real GDP/annual changes
  • UK historical & forecast unsecured household debt/£bn
  • Unemployment and underemployment/m
  • Number of people in employment/m
  • UK median earnings (current prices)/% annual change
  • UK welfare spending by recipient segment/% of GDP
  • UK household debt to income ratio
  • UK self-employed workers/‘000
  • UK trade union membership/‘000
  • Ratio of median house price to median gross annual residence-based earnings (England and Wales)
  • Number of UK bank branches
  • Number of credit cards in issue/m, end of year
  • Historical number of new personal insolvencies per year (England)/'000
  • Food bank usage/ ‘000 parcels distributed by Trussell Trust
  • Rough sleeping – England
  • Key FCA regulatory requirements relevant to Non-Prime Consumer Credit
  • Complaints handled by non-prime firms
  • Complaints handled by Financial Ombudsman Service
  • Volumes of new FOS complaints by product
  • Profitability and loan provisions of leading firms
  • Profitability and loan provisions of leading firms (excluding NewDay, Capital One)
  • Net loan receivables per employee, CAGR 2016-18
  • Non-prime consumer credit receivables (net of impairments) £ million 2017/8
  • Key firms leaving market
  • 1st Stop Financials
  • 1st Stop Receivables/£m
  • Advantage Finance Limited Financials
  • Advantage Finance Limited Receivables/£m
  • Amigo Loans Limited Summary Financials
  • Amigo Loans plc Receivables/£m
  • Bamboo Limited Summary Financials
  • Bamboo Limited Loan Receivables/£m
  • Billing Finance Limited Summary Financials
  • Blue Auto Holdings Limited Summay Financials
  • Capital One (Europe) PLC Summary Financials
  • Capital One (Europe) PLC Loan Receivables/£m
  • CashEuroNet UK Summary Financials
  • Caversham Finance Limited Summary Financials
  • Darwin Loan Solutions Limited Summary Financials
  • Darwin Loan Solutions Limited Loan Receivables/£m
  • DJS (UK) Limited Summary Financials
  • DJS (UK) Limited Loan Receivables/£m
  • Elevate Credit International Limited Summary Financials
  • Elevate Credit International Loan Receivables/£m
  • First Response Finance Limited Summary Financials
  • First Response Finance Limited Loan Receivables/£m
  • Gain Credit LLC Summary Financials
  • Gain Credit LLC Loan Receivables/£m
  • H&T Group Summary Financials
  • Indigo Michael Limited Summary Financials
  • Indigo Michael Limited Loan Receivables/£m
  • First Response Finance Limited Summary Financials
  • Madison CF UK Limited Loan Receivables/£m
  • Morses Club plc Summary Financials
  • Morses Club plc Loan Receivables/£m
  • Mutual Clothing and Supply Company Limited Summary Financials
  • Mutual Clothing and Supply Company Limited Loan Receivables/£m
  • MyJar Limited Summary Financials
  • NewDay Group (Jersey) Limited Summary Financials
  • NewDay Group (Jersey) Limited Loan Receivables/£m
  • Non-Standard Finance plc Summary Financials
  • Non-Standard Finance Loan Receivables/£m
  • UK Credit Limited and Mobile Money Limited Summary Financials
  • UK Credit Limited and Mobile Money Limited Loan Receivables/£m
  • Oakbrook Finance Limited Summary Financials
  • Oakbrook Finance Loan Receivables/£m
  • PCF Bank (Consumer Finance Division) Summary Financials
  • Provident Financial Group PLC Summary Financials
  • Provident Financial Group PLC Loan Receivables/£m
  • Startline Motor Finance Limited and Startline Auto Receivables Limited Summary Financials
  • Startline Auto Receivables Loan Receivables/£m
  • Temple Finance Limited Summary Financials
  • Temple Finance Limited Loan Receivables/£m
Note: Product cover images may vary from those shown
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  • 1st Stop
  • Active Securities
  • Advantage Finance
  • Amigo Loans
  • Avant Credit
  • Bamboo
  • Billing Finance
  • Blue Motor
  • Capital One
  • Cash on Go
  • CashEuroNet UK (Enova)
  • Caversham Finance (Brighthouse)
  • Darwin loan solutions (Evolution, Progressive)
  • DJS (UK)
  • Elevate Credit International (Sunny)
  • Ferratum UK
  • First Response
  • Gain Credit
  • Go Car Credit
  • Greenlight Credit
  • H & T Group PLC (Harvey & Thompson)
  • Indigo Michael (Safety Net Credit)
  • Instant Cash Loans
  • Loans2Go
  • Madison CF UK (118 118 Money)
  • Mallard Leasing
  • Marsh
  • Morses Club
  • Mutual
  • MYJAR
  • New Day
  • Norfolk Capital
  • Oakbrook Finance
  • PDL Finance
  • Premium Plan
  • Private & Commercial
  • Provident
  • Ramsdens Financial
  • Speedloan Finance
  • Startline
  • Temple Finance
  • Think Money
  • Uncle Buck Finance LLP
  • Valour Finance
Note: Product cover images may vary from those shown
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