Deals Activity: Low
Restructuring Activity: High
Restructuring activity in Consumer Finance
Rising inflation has already dampened discretionary spending. With the cost-of-living crisis set to remain a central issue for the foreseeable future, consumer finance providers will be acutely aware of the risk of growing bad debts.
Lenders remain focused on liquidity and minimising the risk of future mis-selling claims in a post-COVID landscape. The likelihood of increased regulation, such as increased credit checking scrutiny, over the coming months and years has the potential to increase operating costs for finance providers, as well as making services more cumbersome to use for consumers.
Adapting to a new regulatory landscape and continuing to provide simple, good-value products will remain a priority for responsible lenders. Any upside for the sector will come from record highs of public saving rates built up during the pandemic, funds that still haven’t fully returned into UK and global markets.
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Ed Boyle is Interpath Co-Lead for the Financial Services sector, which includes Consumer Finance as one of four core segments. Ed also leads our approach to Consumer Finance nationally for Interpath alongside Alex Watkins.Our People
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