IntroductionThe retail lending market delivered a subdued performance in 2005, restrained by a weaker lending environment and uncertainty in the housing market.
But what is the outlook for the future? This brief examines the five key factors that are set to shape UK retail lending in 2007 and beyond.Scope*Covers consumer credit and mortgages in the UK.*Provides forecasts for the retail lending sector split by the consumer credit market and the mortgage market.*Examines the major challenges faced by the retail lending industry such as converging lending markets and reduction in fee income.HighlightsProducts boundaries are blurring giving rise to new opportunities for the market and increased competition in the retail lending market.The loss in fee income on certain products will force lenders to alter the way in which their products are priced in order to boost revenue.With less regulatory burden and more harmonization, cross-border M&A activities will intensify and it is highly probable that the UK retail banking sector will be impacted by this trend.Reasons to Purchase*Learn about forecasts for the consumer credit and mortgage markets*Understand the main challenges facing the retail lending industry over the coming years.