UK Retail Banking: Opportunities and Risks to 2023
The UKs total loan balances outstanding (including credit card balances, personal loan balances, and residential mortgage balances outstanding) recorded a compound annual growth rate (CAGR) of 3.3% during 2014-18 to reach 1,626.6bn ($2,075.6bn). The majority of loan balances outstanding are from home loans, with residential mortgage balances outstanding accounting for 86.7% of total balances in 2018, followed by personal loans (8.8%) and credit cards (4.5%). However, uncertainty on account of Brexit and its impact on the economy will affect the growth of total loan balances outstanding in the coming years. As a result, we estimate total loan balances outstanding to record a subdued CAGR of 2.7% over 2019-23. The UK lending space is dominated by Lloyds Banking Group, Barclays, and RBS Group - a trend that is anticipated to continue over the coming years. However, they may face increased competition from non-bank lenders, digital banks, and digital lending platforms breaking into the market and offering low interest rates and hassle-free loan approvals. The savings market in the UK recorded a CAGR of 3.9% over 2014-18 to reach 1,433.7bn ($1,829.4bn) in 2018. The market grew at a higher rate compared to loan balances during the five-year review period due to economic uncertainty surrounding Brexit.
Based on our proprietary datasets, this report analyzes the UK lending market, with a focus on the consumer lending segment. The report discusses in detail the credit card, personal, and mortgage loan markets, covering market size, competitors market shares, and survey insights. The report also provides a market overview and insights on the retail deposit segment. In addition, it covers the key digital disruptors in the UKs retail lending segment.
- In 2018, credit card balances outstanding in the UK witnessed their slowest growth in the last five years. This situation was exacerbated by the growth of point of sale (POS) finance.
- The UK personal loan market recorded a strong CAGR of 7.4% during 2014-18, supported by low interest rates and better deals by providers fighting to improve market share.
- The UK residential mortgage market registered a CAGR of 2.9% during 2014-18 primarily driven by first-time buyers.
Reasons to buy
- Make strategic decisions using top-level historic and forecast data on the UK retail lending industry.
- Identify the most promising lending segment.
- Receive detailed insights into lending in the UK, including consumer lending.
- Understand the changing market and competitive dynamics by learning about new competitors and recent deals in the retail lending space.
- Receive comprehensive coverage of the retail deposit market in the UK.
Table of Contents
Consumer Lending: Mortgage Loans
Consumer Lending: Personal Loans
Consumer Lending: Credit Card Loans
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