As with other areas of financial services, technology is bringing about radical change in the unsecured lending arena. P2P (peer-to-peer) lenders are challenging traditional lenders with their lower interest rates, online capabilities, and easy access to funds. The target markets for P2P lenders are the segments all lenders want most – Millennials and high-income earners – and there are signs that they are making inroads into those markets. While consumers trust banks more than P2P lenders, they are listening to new lenders, and traditional lenders are scrambling to offer P2P benefits without compromising the advantage they have in the trust department.

For the purposes of this report, Mintel has used the following definition:

Unsecured loan: A loan that is issued and supported only by the borrower's creditworthiness, rather than by a type of collateral. An unsecured loan is one that is obtained without the use of property as collateral for the loan. Borrowers generally must have high credit ratings to be approved for an unsecured loan. Unsecured loans are also referred to as signature loans or personal loans.

Secured loan – A loan that is secured by collateral, such as a house or car – is not considered in this report.