EQ Credit Services Publishes 2022 Consumer Borrowing Report

06 April 2022

New report from EQ Credit Services shows credit providers’ environmental credentials remain a priority for UK borrowers despite financial squeeze

  • Be green or be gone: 45% cite lender’s green credentials as ‘very important’ or ‘extremely important’ in their decision to borrow from them (despite rising cost of living).
  • Reward my sustainability: 56% would consider a sustainability-linked loan (where the interest rate is influenced by the borrower’s energy efficiency), 25% wanted to know more.
  • Flex my credit: 74% showed appetite for flexible credit that could fluctuate in repayment term and interest rate according to their changing circumstances (reflecting economic uncertainty).

Rising inflation, spikes in fuel prices and the growing cost of living crisis haven’t dampened UK borrowers’ climate conscience according to a new report on attitudes to unsecured lending from EQ Credit Services, (part of Equiniti), published today. Almost half (45%) of respondents classed lenders’ green credentials as either very or extremely important when deciding who to borrow from.

Of the 2000+ people surveyed, 56% would also be interested in a loan product that rewarded their efforts to live sustainably with a lower interest rate, should such a product become available.

“It’s amazing to see the British public prioritising sustainability in their finances despite all the pressures they’re feeling at the moment,” comments Will Ellis, Sales Director, EQ Credit Services. “Lenders now need to focus on evolving their green initiatives as quickly as they can; the market is insisting on it. Our data also reveals an appetite for credit products that are pegged to the borrower’s energy efficiency. This is a clear opportunity for an innovative lender to tap into this strong national sentiment.”

Growing wealth gap

The report goes on to reconfirm the widening wealth gap, exacerbated for some by loss of income over the pandemic. 49% confirmed they were more concerned about their finances since the pandemic began, with 18% saving less over the period.  In contrast, 51% said they were now less concerned about their finances, with 30% banking more of their earnings during lockdowns.

The call for flexible credit

74% of survey respondents said they’d be interested in an ‘elastic’ line of credit, that could flex in repayment term and interest rate should their financial circumstances change. This reflects the uncertainty felt by so many Brits, with interest in such a product increasing dramatically this year, up from 39% in 2020.

“Today’s borrowers have a multiplicity of needs which are being rapidly shaped by global events,” continues Ellis. “In today’s marketplace, lenders must be prepared to offer customized and flexible loan products that can both support customers and help them achieve their financial goals.”

The report’s findings strongly indicate that consumers increasingly expect their lender to understand their circumstances, know precisely where they are in their life and exactly what they want.

“Technology has a crucial role to play here,” adds Ellis. “Data available through open banking is deepening lenders’ understanding of their customers, whilst intuitive tech enables them to adjust interest rates and restructure payment plans based on real-time risk profiles. To deliver the level of personalization needed and expected by today’s consumers, these profiles must now be deeper and more sensitively compiled than ever before.”

Pinch + Purpose - ‘Big-squeeze’ finance vs purposeful aspirations: Lending for a multiplicity of needs is available to download.

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ENDS

For more information:

MRM

Jenny Crossland / Helena Jones
Tel: 07766 567297 / 07503 645612
Email: EQ@mrm-london.com

Sources:

Of the 2014 people questioned in this year’s survey, 53% were women, and 46% were men. Less than 1% declined to indicate their gender and/or identified in an alternative manner. The age demographics analysed included 27% 18–34, 25% 35–54, and 38% 55 and over.

The research was undertaken in the UK between October and November 2021 by ResearchBods.

About EQ Credit Services:

EQ Credit Services builds innovative solutions that are transforming the credit industry.  Offering a complete outsourced credit management solution, combining award-winning proprietary technologies, specialist personnel, FCA compliant processes and industry best practice.

EQ Credit Services delivers flexible, agile solutions that support the entire loan life cycle process. The scalable platform enables lenders to increase efficiencies, reduce time to revenue and improve operations.

‘EQ Credit Services’ is the trading name of the following companies; Pancredit Systems Limited (Registered in England and Wales no. 02215760), EQ Gateway Limited (Registered in England and Wales no. 06729467) and The Nostrum Group Limited (Registered in England and Wales no. 04274181).  Part of the EQ Group.

About EQ (Equiniti Group):

EQ is a leading international provider of shareholder, pension, remediation, and credit technology. With over 5,000 employees, it supports 37 million people in 120 countries. EQ’s purpose is to care for every customer and simplify every transaction, delivered with less of an impact on the environment.

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