Product Type: Market Research Report
Published by: Datamonitor
Published: October 2002
Product Code: R313-4361Description Introduction: This brief analyzes the take-up of loans arranged online, and looks at how regulatory change will drive take-up in the future. Scope of the Report: * Focuses on the UK online unsecured personal lending market * Provides distribution splits for the following personal lending channel: high street branch, online, telephone, direct mail and other * Interviews conducted with leading online personal lenders and Department of Trade and Industry (DTI). Report Highlights: Datamonitor estimates the online unsecured personal lending market to represent 11 per cent of the total unsecured personal lending market. Despite the growth in online personal lending, the high street branch remains the favored channel when borrowers are seeking a personal loan. The introduction of online credit agreements will act as a fillip to online personal lenders, meaning it will be easier to purchase a personal loan over the Internet without having to sign any written documents. This will help online personal lending to growth to 18 per cent of the total unsecured lending market in 2006, according to Datamonitor forecasts. Key Reasons to Buy this Report: * Sizes the unsecured personal lending market by distribution channel to 2006 * Includes profiles of leading online personal loan providers, including HBOS Group, Egg and First Direct * Identifies the type of borrowers most likely to take out an online unsecured personal loanTable of Contents Overview
Introduction
Briefing analyzing the take-up of loans arranged online and how regulatory change will drive take-up in the future
Reasons to Purchase
Sizes the unsecured personal lending market by distribution channel to 2006
Enhance your market strategy through profiles of leading online personal loans lenders, including HBOS Group, Egg and First Direct
Scope
This brief focuses on the UK online unsecured personal lending market
Provides distribution splits for the following personal lending channel: high street branch, online, telephone, direct mail and other
Interviews conducted with leading online personal lenders and Department of Trade and Industry (DTI)
Report Highlights
Datamonitor estimate the online unsecured personal lending market to represent 11 per cent of the toal unsecured personal lending market. Despite the growth in online personal lending, the high street branch remains the favored channel when borrowers are seeking a personal loan. The introduction of online credit agreements will act as a fillip to online personal lenders, meaning it will be easier to purchase a personal loan over the Internet without having to sign any written documents. This will help online personal lending to growth to 18 per cent of the total unsecured lending market in 2006, according to Datamonitor forecasts.
Reasons to Purchase
Identifies the type of borrowers most likely to take out an online unsecured personal loan
CHAPTER 1 ACTION POINTS
CHAPTER 2 INTRODUCTION
What is this brief about?
Who is the target reader?
How do you use this brief?
What is the scope of this brief?
CHAPTER 3 THE ONLINE PERSONAL LENDING MARKET
Sizing the unsecured personal loans market
Total outstanding balances
Personal lending market by channel
Online personal lending market
Key drivers in the online personal loans market
Segmenting the personal loans provider
Segmenting the personal loan customer
Datamonitor’s segmentation model
Customer motivations for choice of lender
The branch dominates unsecured personal loan distribution
CHAPTER 4 COMPETITOR STRATEGIES IN THE ONLINE PERSONAL LENDING MARKET
Brand strategy
Distribution strategy
Competitor profiles
HBOS Group
First Direct
Egg
CHAPTER 5 THE FUTURE OF THE ONLINE PERSONAL LENDING MARKET
Total personal lending market forecasts
Forecasts for online unsecured personal lending to 2006 by distribution channel
Scenario one - steady growth in online unsecured personal loans
Factors underpinning the forecasts in scenario one
Scenario two - strong growth in online unsecured personal loans
Factors underpinning the forecasts in scenario two
Chapter 6 APPENDIX
Further Information
Datamonitor Financial Services Consulting
Relevant reports
Forthcoming reports/briefs
The UK retail banking team
LIST OF TABLES
Table 1: Outstanding balances in consumer credit in the UK, by sector 1997-2001
Table 2: UK unsecured personal lending market by distribution channel, 2001
Table 3: Balances outstanding for total and online unsecured personal lending, 1997 - 2001
Table 4: Personal loan advertising expenditure in 2001
Table 5: UK personal lending gross advances: 2001e-6f forecasts under neutral economic conditions
Table 6: UK unsecured personal lending market by distribution channel for scenario one, 2006f
Table 7: UK unsecured personal lending market by distribution channel for scenario two, 2006f 45
LIST OF FIGURES
Figure 1: Credit cards and unsecured personal loans lead the charge as the growth in point-of-sale finance slows, 1997-2001
Figure 2: The bank branch dominates the distribution of unsecured personal loans, 2001
Figure 3: Online personal lending represented 11% of the total market in 2001
Figure 4: Two months interest is the typical fee charged for early loan settlement, November 2001
Figure 5: The five main personal lender segments
Figure 6: Customer segmentation for online personal loans
Figure 7: Most people use the Internet either at home or work
Figure 8: Personal loans are the least popular financial services transaction on the Internet
Figure 9: Online personal loans are purchased primarily by 25-54 year olds
Figure 10: Online personal loans purchased evenly among most income bands
Figure 11: Insurance is the most popular product purchased by respondents
Figure 12: Banks and building societies dominate personal loans distribution
Figure 13: Direct lenders spent the most on advertising personal lending in 2001
Figure 14: HBOS Group online personal loans businesses 36
Figure 15: Bank branch continues to dominate personal loans distribution,2006f
Figure 16: Strong growth in online and personal loans, 2006f
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