Our own strategic partnership with TransUnion enables us to gain unique insights into market data and trends within the consumer finance market.
We decided to take a look at what’s been happening in the personal loans market, and saw that the number of new personal loans issued in the UK between September and November 2022 grew by 5.4% compared to the previous year.
With this in mind, we wondered what people think will happen to the new personal loans market in 2023. Through our Monevo LinkedIn page we set up a poll asking the question, do you think the new personal loans market will grow or decline this year?
We received 50 votes and these were the results:
8 - Contract by 10%
1 - Contract by 20% or more
14 - Remain flat
27 - Grow by 10% or more
Interestingly, the majority of people were optimistic and 27 people think the new personal loans market will grow by 10% or more.
Of these 27 is Danny Mahon, Marketing Director at Monevo. He comments, “Despite global economic conditions and the resulting market volatility, we saw growth at the end of 2022.
Bank of England Governor, Andrew Bailey, has reported that inflation and energy prices are expected to stabilise. With this in mind, I am confident the market will continue to grow in 2023, and it's great to see our responders also share a similar optimistic view!"
On the other hand, Michael Henderson, Sales Director at Monevo thinks the market will remain flat. He adds, “Whilst demand for credit will remain high given consumers' cost of living challenges this is likely to be offset by lenders tightening their lending criteria, so on balance I see the overall market remaining relatively flat as a result. That still provides plenty of growth opportunities for a company like Monevo, matching consumers to the right lender.”
Lee Stretton, Chief Innovation Officer at Monevo also thinks the market will remain flat. He comments, “I think that people will still need funds to meet their goals and objectives, so the interest in borrowing won't dissipate. People will most likely, and stats are starting to show this, cut down on discretionary spending (e.g. daily take away coffee's / eating out) to maintain the same lifestyle going forwards.”
Finally, Monevo’s CEO Greg Cox is more cautious and less optimistic. He adds, “With lenders already tightening supply & increasing rates, consumer affordability reducing at an overall level coupled with consumer confidence and spending only going one way as the recession bites, I can’t see that this is going to be a growth year for consumer credit.
So as we enter the month of February, we will continue to study the data throughout the coming months and keep a close eye on market changes. Will the new loans marketing grow or decline? Only time will tell.