Market share and competitors

The market we serve is large, with c.1 in 5 adults (10 to 12 million people) in the UK not well served by mainstream lenders. Because consumers’ participation in our market is typically driven by their circumstances, the market is relatively fluid over time, with c.1 to 2 million consumers moving in and out of the market each year, as their personal or household circumstances change.

The three main categories of products in our market are revolving credit accounts including credit cards; secured loans, where an asset is used as security for the loan; and unsecured loans of various forms including home collected credit and online lending.

We have market-leading positions in revolving credit, unsecured loans and secured loans, with product and service propositions that are tailored for our customers differing borrowing needs and varied risk profiles. We continue to explore options to evolve our product offerings to meet the needs of more consumers in the market and existing customers of the Group.

In 2020, Vanquis will develop and expand its unsecured personal loan offering to the open market (from existing customers only at present). We will also look to pilot a Satsuma unsecured personal loan offering, leveraging the capability we have developed in online short-term loans.

Our market is highly regulated, primarily by the FCA, PRA and CBI (in the Republic of Ireland), with regulation subject to ongoing evolution and change. As a customer-centric and specialist lender operating across the broadest range of product categories in our market, we feel that we are well placed to respond to the ongoing regulatory challenge inherent in operating in our market.