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UK Non-standard and Sub-prime Consumer Credit 2005

DateMay, 2005
Pages258

€2 236 

Report Information | Custom-Tailored Research | Product Trade Lead


Abstract:

Introduction
 
Non-standard consumer credit providers have performed relatively well in the current pro-borrowing economic environment, but the market is becoming increasingly competitive. How did the main non-standard consumer credit sectors fare in this environment and what does the future hold in store for them? Datamonitor's UK Non-standard and Sub-prime Consumer Credit 2005 report provides the answers.
 

 
Scope
 
Analyzes the three main non-standard consumer credit sectors against the background of the mainstream consumer credit market
 
Sizes the non-standard motor finance, the home collected credit and the non-standard credit card markets in the UK
 
Provides a detailed assessment of each sector, examining latest competitive developments and changes in market share
 
Forecasts each sector to 2009, providing three contrasting scenarios
 
Highlights
 
The UK non-standard population has been dwindling in recent years, driven by relatively strong economic conditions and low base rates. Since 2000 the number of non-standard households has fallen by 322,000. With more households able to access mainstream motor finance, a considerable restraint has been placed on growth in the non-standard market.
 

 
While the plight of the home collected credit sector is no different to that of the entire consumer credit market, this segment potentially faces a greater threat as a result of over-regulation. The majority of the market is comprised of medium and small-sized firms which will find it more difficult to implement the proposed changes.
 

 
Issuing credit cards to non-standard consumers cannot be successfully achieved by simply relaxing credit scoring criteria. Serving this segment requires issuers to fundamentally change the way in which they assess the risk posed by customers with specialist needs, and may even necessitate the creation of an entirely new business model.
 

 
Reasons to Purchase
 
Identify and evaluate the drivers affecting the major non-standard consumer credit markets in the UK
 
Enhance your position in the market by identifying future product trends and competitive developments
 
Plan your future business strategy in confidence using Datamonitor's five-year market forecasts




Table of contents:
 TABLE OF CONTENTS
 
CHAPTER 1 EXECUTIVE SUMMARY 3
 
Introduction 3
 
Sizing the UK non-standard population in 2004 3
 
Datamonitor estimates that the non-standard population stood at 9.1 million in 2004 3
 
Underlying macro-economic factors ultimately drive the non-standard population 4
 
Social trends also play a key role in driving the non-standard population 6
 
The non-standard population will decline to 8.79 million by 2009 6
 
Overview of the UK consumer credit market in 2004 7
 
The consumer credit market has continued to grow in 2004 7
 
Performance of individual consumer credit products 9
 
Personal overindebtedness is an ever-present issue for the UK consumer credit industry 9
 
The non-standard motor finance market 10
 
The non-standard motor finance market had a difficult year in 2004 10
 
Non-standard motor finance providers: surviving in an increasingly crowded market 13
 
In Datamonitor’s opinion, the non-standard motor finance market will grow at a slower rate over the next five years 13
 
The home-collected credit market 14
 
Home collected credit market balances outstanding reach Ј2.4 billion in 2004 14
 
The home collected credit market has come under the attention of the Competition Commission 15
 
The home collected credit market continues to be dominated by the ‘big four’ 16
 
In Datamonitor’s opinion, the UK home collected credit faces a tough future 16
 
The non-standard credit card market 17
 
Saturation and competition in the mainstream market have made the relative profitability of this segment even greater 17
 
However, serving this segment may require issuers to develop an entirely new business model, and this has traditionally limited activity in the UK 18
 
Issuers in this segment also take on significant financial and reputational risk 19
 
In spite of these factors, the UK non-standard market is currently served by a number of mainstream and specialist issuers 19
 
Driven by growth among those with more checkered credit histories, Datamonitor forecasts strong growth in the non-standard credit card market 20
 
CHAPTER 2 INTRODUCTION 40
 
What is this report about? 40
 
Who is the target reader? 43
 
How do use this report? 43
 
CHAPTER 3 SIZING THE UK NON-STANDARD POPULATION IN 2004 45
 
Introduction 45
 
Defining the non-standard population 45
 
Lending products: altering the dynamics of demand and supply 45
 
Subjectivity is a necessary evil 46
 
Alternative commonly used terms 47
 
Sub-prime is a segment of non-standard 48
 
Report coverage: age and affordability 49
 
Datamonitor estimates that the non-standard population stood at 9.1 million in 2004 49
 
A combination of macro-economic and social factors is responsible for a declining non-standard population 51
 
Underlying macro-economic factors ultimately drive the non-standard population 51
 
Social trends also play a key role in driving the non-standard population 53
 
The non-standard population will decline to 8.79 million by 2009 54
 
CHAPTER 4 OVERVIEW OF THE UK CONSUMER CREDIT MARKET IN 2004 55
 
Introduction 55
 
The consumer credit market has continued to grow in 2004 55
 
Cards and loans account for the bulk of consumer credit balances outstanding 57
 
Rapid growth in card usage ensures credit cards continue to dominate consumer credit gross advances 61
 
Gross advances in unsecured personal loans return to growth in 2004 64
 
Credit cards: another exceptional year of growth 66
 
Overdrafts cement their position as the third most popular consumer credit product in terms of gross advances 68
 
Personal overindebtedness is an ever-present issue for the UK consumer credit industry 69
 
Over the past year the media has been explicitly focusing its attention on this issue 70
 
However, according to some industry sources, the situation is not as dramatic as it suggested 71
 
While largely rejecting the accusations of irresponsible lending, providers are nevertheless worried about increasing bad debt 72
 
For more information…. 72
 
CHAPTER 5 THE NON-STANDARD MOTOR FINANCE MARKET 74
 
Introduction 74
 
Overview of the UK point of sale motor finance market in 2003 74
 
Motor finance: difficult market conditions lead to the diminishing share of the consumer credit market 74
 
Relatively weak car sales in 2004 do not quite explain such a slowdown 82
 
Falling average prices help to explain falling value of motor finance 84
 
The non-standard motor finance market also had a difficult year in 2004 85
 
Five steps to size the value of the non-standard motor finance market 86
 
Non-standard motor finance providers: surviving in an increasingly crowded market 100
 
Forecasting the non-standard motor finance market 108
 
Methodology: quantifying motor finance penetration among non-standard consumers 108
 
In Datamonitor’s opinion, the non-standard motor finance market will grow at a slower rate over the next five years 109
 
Under a best case scenario for the future of the UK economy, the non-standard motor finance market will struggle 113
 
Under a worst case scenario, the non-standard motor finance market will perform reasonably well 117
 
CHAPTER 6 THE HOME COLLECTED CREDIT MARKET 121
 
Introduction 121
 
Datamonitor’s methodology for sizing the home collected credit market 122
 
Home collected credit market balances outstanding reach Ј2.4 billion in 2004 122
 
The market failed to recover from the slump of 2003 123
 
The home collected credit market is a sub-sector of the non-standard unsecured personal loans market 124
 
Sizing the non-standard unsecured personal loans market 124
 
The non-standard unsecured personal loans market is worth Ј23.4 billion 126
 
The home collected credit market has come under the attention of the Competition Commission 128
 
The NCC’s doorstep lending research labeled the market as ‘uncompetitive’ 129
 
The ‘super complaint’ is the latest in the line of regulatory initiatives directed towards the UK home collected credit market 131
 
The ever-present issue of overindebtedness only increases the attention placed on the home collected credit market 134
 
The home collected credit market continues to be dominated by the ‘big four’ 137
 
However, the big four’s share of the market has decreased over the past five years 139
 
Providers’ mixed fortunes in recent years reflect the mature nature of the home collected credit market 146
 
External threats to the home collected credit market remain limited 159
 
Government initiatives: currently pose little competitive threat 159
 
Credit unions do not pose a real competitive threat just as yet 161
 
Non-standard credit cards – both a threat and an opportunity 162
 
Alternative commercial sources of credit have the potential to pose greater competitive threat 163
 
Forecasting the home collected credit market 166
 
Methodology: calculating home collected credit’s penetration of the non-standard population 166
 
In Datamonitor’s opinion, the UK home collected credit market faces a tough future 167
 
Under a best case scenario for the future of the UK economy, the home collected credit market is forecasted to decline significantly 170
 
However, should the economy take a turn for the worse, the home collected credit market will reap the benefits 173
 
CHAPTER 7 NON-STANDARD CREDIT CARDS 177
 
The non-standard credit card market presents issuers with a clear opportunity for growth 177
 
Saturation and competition in the mainstream market have made the relative profitability of this segment even greater 178
 
The self-employed account for more than half of the 9.6 million credit cards in issue to non-standard individuals 180
 
The self-employed account for the greatest share of the Ј11.9 billion non-standard credit card market 188
 
However, serving this segment may require issuers to develop an entirely new business model, and this has traditionally limited activity in the UK 192
 
Issuers need underwriting models and skills beyond that in the mainstream to succeed in this market 192
 
Product pricing and design needs to be tailored for the non-standard market 194
 
Direct mail holds the key to marketing in this segment 198
 
A different customer management approach is also required to serve certain segments of this market 200
 
Issuers in this segment also take on significant financial and reputational risk 202
 
The risks to an issuer’s brand must be considered 202
 
Regulators have proved keen to clamp down on what they see as unfair or irresponsible lending practices 203
 
In spite of these factors, the UK non-standard market is currently served by a number of mainstream and specialist issuers 207
 
Barclaycard, Capital One, Citibank, HSBC, and RBS are all active in this market 207
 
Several mainstream players have acquired specialist lenders in order to gain the expertise needed to issue in this market 209
 
Mainstream players have used different branding strategies to enter this market 211
 
Specialist issuers target the lower end of the non-standard spectrum 214
 
Driven by growth among those with more checkered credit histories, Datamonitor forecasts strong growth in the non-standard credit card market 220
 
Datamonitor’s five-year forecast for the non-standard credit card market 220
 
For those outside this market, entering the non-standard space will remain difficult 225
 
Issuers not present in this market can now add ‘overcoming incumbent players’ to the list of problems of entry 225
 
Partnership or acquisition could now be the only route into this market 226
 
Referrals, secured cards and focusing on an existing customer base also provide clear options for issuers looking to enter this market 227
 
Incumbent players must also beware the dangers of this market 229
 
Issuers must be careful not to take on too much risk 229
 
Integrity is paramount in this market; issuers must tread carefully to avoid any adverse media or regulatory attention 230
 
Datamonitor Cards and Payments Team view 230
 
CHAPTER 8 APPENDIX 232
 
Supplementary data tables 233
 
Data tables relating to Chapter 3 Sizing the UK Non-standard Population in 2004 233
 
Data tables relating to Chapter 3 Overview of the UK Consumer Credit Market in 2004 234
 
Data tables relating to Chapter 5 The Non-standard Motor Finance Market 236
 
Data tables relating to Chapter 6 The Home Collected Credit Market 239
 
Data tables relating to Chapter 7 The Non-standard Credit Card Market 248
 
Further information 251
 
Datamonitor’s research methodology 251
 
Definitions 251
 
Relevant links 254
 
Relevant Datamonitor research publications 256
 
Datamonitor’s custom research capabilities 256
 
The retail banking team 257
 
How to contact experts in your industry 258
 

 

 
LIST OF TABLES
 
Table 1: Total consumer credit gross advances and outstanding balances, 1995-2004e 56
 
Table 2: Gross advances for secured and unsecured personal loans, 2000-2004e 64
 
Table 3: Value of motor finance arranged at the point of sale for private new car purchases by product, 2000-2004e 79
 
Table 4: Value of motor finance arranged at the point of sale for private used car purchases by product, 2000-2004e 81
 
Table 5: New and used private car sales in the UK, 2000-2004 82
 
Table 6: Responses to the question ‘was the car you bought or leased new or used’ by socio-economic group, 2001 90
 
Table 7: Number of non-standard car sales, 2000-2004 91
 
Table 8: New, used and total cars sold to non-standard buyers, compared to all car buyers, 2000-2004 93
 
Table 9: Used car sales by channel, 2000-2004 94
 
Table 10: Value of the market for non-standard point-of-sale motor finance (in terms of gross advances), 2000-2004 98
 
Table 11: Forecasted non-standard motor finance market gross advances compared to total motor finance market gross advances under Datamonitor’s neutral scenario, 2004-2009f 112
 
Table 12: Forecasted non-standard motor finance market gross advances compared to total motor finance market gross advances under a best case scenario, 2004-2009f 116
 
Table 13: Forecasted non-standard motor finance market gross advances compared to total motor finance market gross advances under a worst case scenario, 2004-2009f 120
 
Table 14: Administrative timetable for the Competition Commission’s inquiry into the home collected credit market, 2004 131
 
Table 15: UK home collected credit balances outstanding by competitor, 2000-2004e 144
 
Table 16: SAV Credit fact file, 2005 215
 
Table 17: Vanquis Bank fact file, 2005 217
 
Table 18: Number of people defined as non-standard compared to standard population, 2000-2004e 233
 
Table 19: UK Non-standard population forecasts according to Datamonitor’s neutral scenario, 2004-2009f 233
 
Table 20: Consumer credit outstanding balances by product, 2000-2004e 234
 
Table 21: Market share of outstanding balances in consumer credit by product, 2000-2004e 234
 
Table 22: Consumer credit gross advances by product, 2000-2004e 235
 
Table 23: Market share of consumer credit gross advances, 2000-2004e 235
 
Table 24: Consumer credit balances outstanding per UK adult, 1995-2004e 235
 
Table 25: Value of motor finance for private new and used cars purchases at the point of sales, 2000-2004e 236
 
Table 26: Market share of the four main product lines in the new car finance market (gross advances), 2000-2004e 236
 
Table 27: Market share of the four main product lines in the used car finance market (gross advances), 2000-2004e 237
 
Table 28: Market share of the three main product lines in the point of sale retail finance (balances outstanding), 2000-2004e 237
 
Table 29: Market share of the three main product lines in the point of sale retail finance (gross advances), 2000-2004e 237
 
Table 30: Used car purchases by age of a vehicle, 2000-2004 238
 
Table 31: Used cars sales by distribution channels, 2000-2004 238
 
Table 32: Average new and used car prices, 2000-2004 238
 
Table 33: The leading non-standard motor finance providers by advertising spend, 2004 239
 
Table 34: The home collected credit market gross advances and balances outstanding, 2000-2004 239
 
Table 35: Mainstream and non-standard unsecured personal loan gross advances and balances outstanding, 2000-2004 240
 
Table 36: Indexed home collected credit and non-standard personal loans balances outstanding, 2000-2004 240
 
Table 37: Total UK retail lending balances outstanding, by credit type, 2000-2004 241
 
Table 38: Compound annual growth in gross advances by lending product, 2000-2004 241
 
Table 39: Home collected credit balances outstanding, indexed 2000=100, 2000-2004 242
 
Table 40: Estimated market share of the four leading providers in the home collected credit market, 2000-2004 242
 
Table 41: Turnover and operating profit/loss of Park Group, 2000-2004 242
 
Table 42: Ratio of provision for bad and doubtful debt to gross customer account receivables among leading home collected credit market players, 2000-2004 243
 
Table 43: Customer credit receivables by type of repayment, Cattles, 2002-2004 243
 
Table 44: Home collected and direct repayment credit customer numbers, Cattles, 2002-2004 243
 
Table 45: Gross customer account receivables and estimated home collected credit balances outstanding, Cattles, 2000-2004 244
 
Table 46: Average advance per customer by product, Cattles, 2003 & 2004 244
 
Table 47: London Scottish gross customers’ account receivables and estimated home collection balances outstanding, 2000-2004 245
 
Table 48: Balances outstanding by division, Provident Financial, 2002-2004 245
 
Table 49: Number of customers and agents by country, Provident Financial , 2004 245
 
Table 50: Provident Financial – number of customers and agents in Central and Eastern European countries of operation, 2000-2004 246
 
Table 51: Datamonitor’s neutral forecasts for the home collected credit market, 2004-2009f 246
 
Table 52: Datamonitor’s optimistic forecasts for the home collected credit market, 2004-2009f 247
 
Table 53: Datamonitor’s pessimistic forecasts for the home collected credit market, 2004-2009f 247
 
Table 54: Estimated number of cards in issue and average number of cards per person for the non-standard population by reason of being non-standard, 2004e 248
 
Table 55: Estimated size of the UK non-standard credit card market, segmented by individuals that are self-employed with no other reason to be non-standard and other non-standard, 2003e-2004e 249
 
Table 56: Forecast size of the UK non-standard credit card market, segmented by individuals that are self-employed with no other reason to be non-standard and other non-standard, 2004e-2009f 250
 
Table 57: Relevant Datamonitor publications 256
 

 
LIST OF FIGURES
 
Figure 1: The UK non-standard population continues to decline, falling to an estimated 9.1 million in 2004, 200-2004e 4
 
Figure 2: According to Datamonitor’s neutral forecast, the non-standard population will decline to 8.79 million by 2009, 2004-2009f 7
 
Figure 3: The consumer credit market has been growing strongly over the past ten years, both in terms of new business and balances outstanding, 1995-2004e 8
 
Figure 4: The average UK adult now owes Ј4,004 in unsecured personal debt, 1995-2004e 10
 
Figure 5: The value of point of sale motor finance extended to non-standard buyers have fallen considerably over the last five years, 2000-2004 11
 
Figure 6: The non-standard motor finance market has failed to recover from the slump of five years, 1999-2004 12
 
Figure 7: According to Datamonitor’s assumptions, the non-standard motor finance market will grow on average by 7.2 per cent each year under this scenario, 2004-2009f 14
 
Figure 8: Both gross advances and balances outstanding have stagnated in the home collected credit market in recent years, 2000-2004 15
 
Figure 9: Under Datamonitor’s neutral scenario, the home collected credit market is forecasted to decline by an average of 1.8 per cent each year to 2009, 2004-2009f 17
 
Figure 10: Datamonitor covers the non-standard and sub-prime lending market in 2005 with a suite of three published reports 42
 
Figure 11: Datamonitor’s definition of non-standard 46
 
Figure 12: A certain degree of subjectivity is needed in a definition of the non-standard population because some mainstream lenders are inevitably willing to accept greater risk than others 47
 
Figure 13: Common terms used to refer to the circumstance defined by Datamonitor as “non-standard” 48
 
Figure 14: Sub-prime consumers represent a segment of the non-standard population 49
 
Figure 15: The UK non-standard population continues to decline, falling to an estimated 9.1 million in 2004, 200-2004e 50
 
Figure 16: According to Datamonitor’s neutral forecast, the non-standard population will decline to 8.79 million by 2009, 2004-2009f 54
 
Figure 17: The consumer credit market has been growing strongly over the past ten years, both in terms of new business and balances outstanding, 1995-2004e 56
 
Figure 18: Unsecured personal loans and credit cards account for the bulk of the total outstanding balances, 2000-2004e 58
 
Figure 19: Unsecured personal loans and credit cards continue to dominate the market in terms of balances outstanding, 2000-2004e 60
 
Figure 20: Credit cards is the dominant product category in the market in terms of new business, 2000-2004e 61
 
Figure 21: Credit cards and unsecured personal loans now account for 81.3 per cent of total new business in the consumer credit market, 2000-2004e 63
 
Figure 22: The growth of secured personal loans is estimated to have slowed down considerably in 2004, 2000-2004e 65
 
Figure 23: The average UK adult now owes Ј4,004 in unsecured personal debt, 1995-2004e 70
 
Figure 24: Outstanding balances in used car finance cemented their dominance of the market in 2004, 2000-2004e 75
 
Figure 25: Gross advances in new car finance fell sharply in 2004, 2000-2004e 76
 
Figure 26: Hire purchase has slightly increased its share of new business in the new car finance market over the last five years, 2000-2004e 78
 
Figure 27: Hire purchase continues to dominate the used car finance market, 2000-2004e 80
 
Figure 28: Volumes of cars over 10 years old have declined slightly over the last five years, 2000-2004 83
 
Figure 29: Private used car sales amounted to 3.7 million out of a total 7.99 million used car sales in the UK in 2004, 2000-2004 84
 
Figure 30: Average new and used car prices have fallen dramatically since 2000, 2000-2004 85
 
Figure 31: Datamonitor’s methodology for estimating the size of the non-standard motor finance market 87
 
Figure 32: Methodology used to calculate the number of non-standard households in the UK 88
 
Figure 33: The self-employed population account for almost 44 per cent of all non-standard households with access to a car, 2004 89
 
Figure 34: Used car sales to non-standard households have had a particularly bad year in 2004, 2000-2004 92
 
Figure 35: The value of point of sale motor finance extended to non-standard buyers has fallen considerably over the last five years, 2000-2004 96
 
Figure 36: The non-standard motor finance market has been performing even more poorly than the mainstream market in recent years, 2000-2004 97
 
Figure 37: The non-standard motor finance has failed to recover from the slump of five years, 1999-2004 99
 
Figure 38: Motor finance providers differentiate themselves according to distance from point of sale and exposure to credit risk 101
 
Figure 39: Qualitative assumptions behind Datamonitor’s neutral forecasting scenario 110
 
Figure 40: According to Datamonitor’s assumptions, the non-standard motor finance market will grow on average by 7.2 per cent each year under this scenario, 2004-2009f 112
 
Figure 41: Qualitative assumptions behind Datamonitor’s optimistic forecasting scenario 113
 
Figure 42: According to this scenario, the non-standard motor finance market will record a slightly weaker growth and perform worse than the mainstream motor finance market, 2004-2009f 116
 
Figure 43: Qualitative assumptions behind Datamonitor’s pessimistic scenario 117
 
Figure 44: Under the pessimistic scenario, the non-standard motor finance market is forecasted to account for an increasingly bigger slice of the total market, 2004-2009f 119
 
Figure 45: Both gross advances and balances outstanding have stagnated in the home collected credit market in recent years, 2000-2004 123
 
Figure 46: The non-standard unsecured personal loans market is more evenly distributed among the different sub-groups of the non-standard population than that witnessed in other non-standard lending markets, 2004 125
 
Figure 47: The non-standard sector now accounts for 26 per cent of the total UK unsecured personal loan market, 2000-2004 127
 
Figure 48: The non-standard personal loan market has far outpaced the home collected credit market in terms of balances outstanding growth, 2000-2004 128
 
Figure 49: Some of the current legislative requirements affecting the home collected credit market, 2004 133
 
Figure 50: Home collected credit accounts for a marginal proportion of the total UK retail lending, 2004e 135
 
Figure 51: Compared to other lending products, the home collected market failed to record any significant growth rate over the last five years, 2000-2004 137
 
Figure 52: While the market share of the ‘big four’ has slipped, they still account for over 60 per cent of the total market, 2004e 138
 
Figure 53: Together, the big four have lost 12.7 per cent of the market over the past five years, 2000 & 2004 139
 
Figure 54: In addition to increasing cash lending turnover, Park Group also began to make operating profit in 2003, 2000-2004 141
 
Figure 55: Provident Financial is ahead of Cattles in terms of its total home collected credit balances outstanding and the number of home collected credit customers, 2004e 143
 
Figure 56: The two biggest home collected credit providers struggled during the past couple of years, particularly Cattles, 2000-2004 145
 
Figure 57: The majority of lenders saw their bad debt provisions stabilize in recent years, while some have experience marginal increases, 2000-2004 148
 
Figure 58: There has been a notable shift in Cattles’ customer credit receivables away from home collected credit to direct repayment, 2002-2004 150
 
Figure 59: The number of Cattles’ home collected credit customers has been decreasing steadily in recent years, 2002-2004 151
 
Figure 60: Cattles’ gross customer account receivables and estimated home collected credit balances outstanding, 2000-2004 152
 
Figure 61: The average advance per customer has increased since 2003, except for home collected credit products, 2003 & 2004 153
 
Figure 62: Home collection accounts for an increasingly smaller proportion of London Scottish customer receivables, 2000-2004 154
 
Figure 63: Provident’s international home collected credit division and Yes Car Credit have recorded the biggest increases in balances outstanding, 2002-2004 155
 
Figure 64: Provident Financial also has a significant presence in a number of countries, notably Poland, 2004 157
 
Figure 65: The last five years saw Provident Financial expand strongly in Eastern Europe in terms of customer and agent numbers, 2000-2004 158
 
Figure 66: Qualitative assumptions behind Datamonitor’s neutral forecasting scenario 168
 
Figure 67: Under Datamonitor’s neutral scenario, the home collected credit market is forecasted to decline by an average of 1.8 per cent each year to 2009, 2004-2009f 170
 
Figure 68: Qualitative assumptions behind Datamonitor’s optimistic forecasting scenario 171
 
Figure 69: According to Datamonitor’s optimistic scenario, the home collected credit market is forecasted to decline by 3.6 per cent each year to 2009, 2004-2009f 173
 
Figure 70: Qualitative assumptions behind Datamonitor’s pessimistic forecasting scenario 174
 
Figure 71: According to Datamonitor’s pessimistic scenario, the home collected credit market is forecasted to grow on average by 3.2 per cent each year to 2009, 2004-2009f 176
 
Figure 72: Heavy competition in the UK credit card market has driven down standard and introductory APRs, Jan 1998-Jan 2005 179
 
Figure 73: Despite showing some growth in 2004, the non-standard credit card market remains far less developed than the mainstream market, 2003e-2004e 182
 
Figure 74: There is now slightly more than one credit card in issue per non-standard individual, 2003e-2004e 183
 
Figure 75: The self-employed population accounts for over half of the credit cards in issue to the non-standard population, 2004e 185
 
Figure 76: The unemployed have the lowest level of cardholding per head, while those in full time employment enjoy the highest, 2004e 187
 
Figure 77: The total non-standard credit card market was worth Ј11.9 billion in 2004e, 2003e-2004e 190
 
Figure 78: Standard purchase APRs are far higher in the non-standard market, as compared to the mainstream, 2005 196
 
Figure 79: 100 per cent of non-standard issuer marketing was direct mail in 2004, while advertising in the whole UK credit card market utilized a more varied range of channels, 2004 199
 
Figure 80: Media coverage of this market has been decidedly negative, 2003-2004 202
 
Figure 81: Four of the top seven largest issuers in the UK market are currently active in the non-standard market, 2005 209
 
Figure 82: Mainstream issuers entering the non-standard market have employed one of two branding strategies 212
 
Figure 83: Datamonitor forecasts the non-standard credit card market to continue to grow over time, with transaction values reaching Ј16.7 billion in 2009f, 2004e-2009f 222
 
Figure 84: Datamonitor’s core consulting capabilities 257
 

 




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