Financial Services (FS)

Consumer Finance

Deals Activity: High

Restructuring Activity: High

Consumer Finance

Q1 of 2023 saw two deals in the Consumer Finance sector:

  • Automated Payment Transfer was acquired by SmarterPay
  • Bluestone Mortgages was acquired by Shawbrook Bank through Pollen Street Capital

The deals activity in this sector has been influenced by:

  • Increasing cost-to-serve: new credit check requirements are increasing both the cost and complexity of providing some consumer finance products, potentially shrinking the market size and placing larger incumbent businesses at an advantage.

Restructuring activity in the sector remains high. This is predominantly due to the anticipation of increasing default rates and distressed debt levels as cost-of-living pressures and high interest rates combine to squeeze disposable incomes.

In addition, despite increased credit checking processes by the larger market operators, demand remains strong for Buy-Now-Pay-Later (BNPL) products. 

Deals activity in Consumer Finance

Restructuring activity in Consumer Finance

Find Your Expert

Ed Boyle and Nick Smith are Co-Heads of Financial Services Cluster, supported by an experienced senior team. Alex Watkins leads our approach to Consumer Finance nationally.

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Navigate your next FS challenge.

Our specialist FS team helps Financial Institutions successfully navigate periods of stress and distress by working with them to scale the challenge, explore their options and then design, communicate and execute optimum solutions which are focused on rebuilding capital, performance and shareholder returns.

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