Provident Financial - Annual Report & Accounts 2004

Our marketplace

Our products

Home credit

By providing credit in a responsible, well-managed way, we aim to make life easier for customers who might otherwise be excluded from such products. Our home credit loans provide extra cash for a multitude of uses, from paying for a wedding to buying school uniforms. Agents deliver small, unsecured cash loans – typically between £50 and £500 – direct to the door and collect the repayments every week at a time convenient to the customer. The service is simple, flexible and transparent, with a one-off fixed charge and no hidden penalty charges. As a result, our customers always know exactly how much they owe.

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Insurance

Our motor insurance division offers competitive motor insurance policies with the emphasis on non-comprehensive insurance and policies for women and drivers of older cars or the second car in a household. It distributes its policies through a network of over 4,000 brokers. We succeed by tailoring our products to the needs of our market and processing low-value transactions cost effectively. The consequent savings can then be passed to our customers.

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Vanquis Bank

As part of our strategy to broaden our product range in the UK, we formed Vanquis Bank in 2003 to test whether a different type of credit card could win new customers for Provident in a market sector we already know very well through our home credit business. It is increasingly difficult to get by without a credit card in today’s society. Nevertheless, there are many people – those with limited or no credit history, those who may have had credit card problems in the past but are now over them, and those on modest incomes – who do not qualify for a traditional credit card or who do not apply because they do not want to take the risk of incurring penalty charges for missed or late payments. In making credit cards available to more people in a controlled and affordable way, Vanquis Bank is helping expand what Provident can offer in the UK. Rather than replicating existing credit cards, the Vanquis Bank credit card has a number of unique features that make it suitable for our target customers. Cards are available both with and without normal default charges. We also offer fixed or variable repayments, the possibility of paying weekly, fortnightly or monthly and guaranteed reductions in interest rates for customers who demonstrate a good payment record.

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Yes Car Credit

Our car finance business, Yes Car Credit, was acquired at the end of 2002. It has a distinct, credit-led integrated business model under which it sells its customers a package of a car, financing and related optional insurance products.

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