November 2014 showed a small dip in lending compared to the record breaking October 2014 but the figures continued an increase in monthly year on year lending. The November figures showed a 10% increase on November 2013. The report showed that as November last year, the industry lent an extra £100m than it did at the same stage in 2013.
Why was this?
Paul McGerrigan, founder and chief executive at Loan.co.uk analysing the figures said “one thing we have seen a great deal in the last year is the fact that lenders have continued to make improvements to the products they have on offer. This has been the case for the past few months and it looks set to continue”.
Most of the businesses in the sector have reduced rates and also simplified the criteria for loans even further. They have also introduced newer plans geared towards specific groups of individuals such as bad credit secured loans, you can see the advantages explained here and also expanded into new environments.
The changes pointed out by Mr McGerrigan means secured loan businesses are becoming more popular with the lending public and thus bringing in a higher number of new registrations. The industry growth is partly reliant on the fact that new entrants are raising the bar in terms of marketing and providing of new products forcing older players to shift grounds. This has led to a win-win for all parties as consumers can now readily access loans in areas ignored by secured loans companies in the past.
Again, the can be traced to its movement towards the use of technology as can be seen in sectors like peer-to-peer lending and mortgages. In the past, everything was done manually but in the last few months, more players are embracing the use of technology and the web space to reach out to new prospects and close out more deals. The shift towards technology brought about quicker and more efficient service, further increasing the number of satisfied consumers.
The secured loans businesses are now moving to the social media as well. This is expected to bring more improvements in industry numbers by the time the November 2015 review of the Loans Warehouse is released. Another factor that will further improve the industry and bring about more growth is the automation of processes. Many businesses in the sector are working towards full implementation of automated processes across board, further simplifying the loan application, review and approval process!
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