Table of Contents
Introduction
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- Key themes in the report
- Data sources
- Definitions
- Abbreviations
Executive Summary
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- The market
- Personal loan market value falls by half between 2008 and 2013
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- Figure 1: Estimated total value of outstanding personal lending, IoI, NI and RoI, 2008-13
- Forecast
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- Figure 2: Indexed value of outstanding personal lending, IoI, NI and RoI, 2008-18
- Market factors
- 2014 expected to see economic improvement
- Consumers concerned about debt levels
- Drop in unemployment makes Irish borrowers ‘safer bets’
- Consumers left with less disposable income
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- Figure 3: Consumer price index, UK (incl. NI) and RoI, year-on-year percentage change, 2007-13
- Companies and products
- The consumer
- Third of NI and 46% of RoI consumers have at least one personal loan
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- Figure 4: Number of current outstanding personal loans (excluding student loans, overdrafts and credit card debt), NI and RoI, October 2013
- Buying a car or repairing home are the main reasons to borrow money
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- Figure 5: Purpose of last personal loan, NI and RoI, October 2013
- A quick approval important when selecting a loan provider
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- Figure 6: Factors that see consumers pick one loan provider over another, NI and RoI, October 2013
- Consumers do not like to be in debt and see borrowing as a last resort
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- Figure 7: Agreement with statements relating to personal loans, NI and RoI, October 2013
Trend Applications
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- Help Me Help Myself
- Retired for Hire
- Mintel Futures: Human
Market Overview
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- Key points
- 2014 looks promising for economic growth
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- Figure 8: GDP growth, actual and forecast, NI, RoI and UK, 2011-14
- Irish consumers making efforts to lower debt levels
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- Figure 9: How concerned consumers are with their current debt levels, NI and RoI, July 2013
- Unemployment falling, making more consumers safer bets for loans
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- Figure 10: Unemployment (%) levels, NI and RoI, 2010-13
- Consumer confidence improving
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- Figure 11: Consumer confidence, NI and RoI, Q3 2008-Q4 2013
- Disposable income drops in the face of rising costs of living
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- Figure 12: Real household net disposable income, annual growth rates, 2007-12
- Weekly earnings increasing, but not enough to meet costs of living
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- Figure 13: Average weekly earnings, all employees, NI and RoI, 2008-13
- Figure 14: Consumer price index, UK (incl. NI) and RoI, year-on-year percentage change, 2007-13
Competitive Context
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- Key points
- Credit cards most owned type of credit product
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- Figure 15: Ownership of credit products, NI and RoI, July 2013
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- Figure 16: Indexed value of credit card transactions, actual, estimated, forecast and projected, NI and RoI, 2008-18
- Payday loans see low usage among consumers
Strengths and Weaknesses
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- Strengths
- Weaknesses
Market Size and Forecast
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- Key points
- Personal lending market value drops by half 2008-13
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- Figure 17: Estimated total value of outstanding personal lending, IoI, NI and RoI, 2008-18
- NI loans market fell first, but RoI fell harder
- Credit unions restricted in how much they can lend
- Personal loans market will see a long road to recovery
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- Figure 18: Indexed value of outstanding personal lending, IoI, NI and RoI, 2008-18
- RoI market recovery set to be slower
Companies and Products
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- Allied Irish Bank (AIB) Group
- Key facts
- Personal loan products
- RoI
- NI
- Bank of Ireland (BOI)
- Key facts
- Personal loan products
- Recent developments
- Danske Bank
- Key facts
- Personal loan products
- Recent developments
- Halifax
- Key facts
- Personal loan products
- Recent developments
- HSBC
- Key facts
- Personal loan products
- Recent developments
- Nationwide
- Key facts
- Personal loan products
- Recent developments
- Permanent TSB
- Key facts
- Personal loan products
- Recent developments
- Santander
- Key facts
- Personal loan products
- Recent developments
- Ulster Bank
- Key facts
- Personal loan products
- Recent developments
The Consumer – Ownership of Personal Loans
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- Key points
- Third of NI and 46% of RoI consumers have personal loans
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- Figure 19: Number of current outstanding personal loans (excluding student loans, overdrafts and credit card debt), NI and RoI, October 2013
- NI women more likely to have loan than NI men
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- Figure 20: Consumers who own one outstanding personal loan (excluding student loans, overdrafts and credit card debt), by gender and age, NI and RoI, October 2013
- Multiple loan ownership low
- The very young and very old most likely to not own loans
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- Figure 21: Consumers who own no personal loans (excluding student loans, overdrafts and credit card debt), by age, NI and RoI, October 2013
The Consumer – Use of Personal Loans
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- Key points
- Buying a vehicle main reason for personal loan
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- Figure 22: Purpose of last personal loan, NI and RoI, October 2013
- Consumers with children most likely to borrow for a car
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- Figure 23: Consumers who took out their last loan to buy a new/used motor vehicle, by gender, NI and RoI, October 2013
- Consumers with children more likely to borrow money for a car
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- Figure 24: Consumers who took out their last loan to buy a new/used motor vehicle, by number of children in household, NI and RoI, October 2013
- Home improvements/repairs second most popular reason to take out a loan
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- Figure 25: Consumers who took out their last loan for home improvements/repairs, by gender, NI and RoI, October 2013
The Consumer – Important Factors When Choosing a Loan Provider
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- Key points
- A quick approval most important to RoI consumers
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- Figure 26: Factors that see consumers pick one loan provider over another, NI and RoI, October 2013
- Consumer demand for transparency
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- Figure 27: Consumers who feel that a ‘Thorough explanation of the terms and conditions of the loan’ is important when picking a loan provider, by age, NI and RoI, October 2013
- Four in ten consumers pick a loan provider based on suitability of product
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- Figure 28: Consumers who feel that ‘Whether or not the product is suitable for my circumstances’ is important when picking a loan provider, by age, NI and RoI, October 2013
- NI consumers prefer remote application, RoI want face-to-face
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- Figure 29: Arranging a personal loan face-to-face vs. remotely, NI and RoI, October 2013
- NI consumers want convenience when applying for a loan
The Consumer – Attitudes Towards Personal Loans
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- Key points
- Majority of Irish consumers do not like the idea of being in debt
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- Figure 30: Agreement with statements relating to personal loans, NI and RoI, October 2013
- Women and mature consumers more wary of debt than men and the young
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- Figure 31: Agreement with the statement ‘I don’t like the idea of being in debt’, by age and gender, NI and RoI, October 2013
- Half would rather save than take out a loan
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- Figure 32: Agreement with selected statements relating to personal loans, NI and RoI, October 2013
- High cost of living may leave few with any choice but to borrow
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- Figure 33: How consumers rate their current financial situation, NI and RoI, November 2013
- Over half claim to keep an eye on their finances
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- Figure 34: Agreement with the statement ‘I like to keep a close eye on my finances’, by social class, NI and RoI, October 2013
- Few rejected for a loan in the last 12 months… but few applying
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- Figure 35: Percentage change (annual) in number of loans to RoI households, Oct 2012-13
Appendix
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- RoI Toluna tables
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- Figure 36: Number of current outstanding personal loans (excluding student loans, overdrafts and credit card debt), by all demographics, RoI, October 2013
- Figure 37: Purpose of last personal loan, by all demographics, RoI, October 2013
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- Figure 38: Purpose of last personal loan, by all demographics, RoI, October 2013 (continued)
- Figure 39: Purpose of last personal loan, by all demographics, RoI, October 2013 (continued)
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- Figure 40: Factors that see consumers pick one loan provider over another, by all demographics, RoI, October 2013
- Figure 41: Factors that see consumers pick one loan provider over another, by all demographics, RoI, October 2013 (continued)
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- Figure 42: Factors that see consumers pick one loan provider over another, by all demographics, RoI, October 2013 (continued)
- Figure 43: Agreement with statements relating to personal loans, by all demographics, RoI, October 2013
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- Figure 44: Agreement with statements relating to personal loans, by all demographics, RoI, October 2013 (continued)
- Figure 45: Agreement with statements relating to personal loans, by all demographics, RoI, October 2013 (continued)
- NI Toluna tables
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- Figure 46: Number of current outstanding personal loans (excluding student loans, overdrafts and credit card debt), by all demographics, NI, October 2013
- Figure 47: Purpose of last personal loan, by all demographics, NI, October 2013
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- Figure 48: Purpose of last personal loan, by all demographics, NI, October 2013 (continued)
- Figure 49: Purpose of last personal loan, by all demographics, NI, October 2013 (continued)
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- Figure 50: Factors that see consumers pick one loan provider over another, by all demographics, NI, October 2013
- Figure 51: Factors that see consumers pick one loan provider over another, by all demographics, NI, October 2013 (continued)
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- Figure 52: Factors that see consumers pick one loan provider over another, by all demographics, NI, October 2013 (continued)
- Figure 53: Agreement with statements relating to personal loans, by all demographics, NI, October 2013
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- Figure 54: Agreement with statements relating to personal loans, by all demographics, NI, October 2013 (continued)
- Figure 55: Agreement with statements relating to personal loans, by all demographics, NI, October 2013 (continued)
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