More and more loans are being requested online, the market share of offers with comparable facilities is growing and banks are increasingly losing market share: these are the results of an Ipsos study on the current development in the German credit market.
On behalf of the credit marketplace “creditend”, the survey institute Ipsos surveyed 1001 consumers who had taken out a loan in 2014, according to the location of the deal. There were seven options: at a retailer, in a branch bank, on the homepage of a bank, on a comparison portal, with a credit intermediary, with the online retailer or in other ways.
Not just car loans: every third loan is taken out at the point of sale
According to the survey, every third loan is taken up directly at the point of sale: such loans in the retail sector are particularly relevant for the purchase of motor vehicles, furniture or cars. Dealers cooperate with banks, which can carry out the application within a few minutes. Frequently, loans are cross-subsidized: if a trader offers installment payments at 0.0% interest, the financing costs are implicitly included in the selling price.
Thirty percent of the surveyed borrowers said that they took their loan from a local bank or savings bank. Compared to the survey of the previous year, this means a significant reduction. However, this can not only be explained by the growing affinity of consumers for the Internet, as the proportion of loans taken out on banks’ websites was also declining: 13% of respondents said that they were lending to have requested this way.
Interest in comparison of providers grows
9% of the loans were taken out via online comparison portals, which were able to gain market share. Comparison portals list the loan offers from banks with which cooperations are maintained. The portals are particularly suitable for borrowers with first – class qualifications (permanent employment with a minimum of 2.5 2,500 per month, no maintenance obligations, not older than 55 years and no negative features), but rarely lead other target groups to the best possible offer often lead to rejections there. 7% of the loans were made directly to a credit intermediary, 4% to another way (loans to relatives or employers) and only 3% to online traders.
The online share will continue to grow
13% on banks’ websites, 9% on credit comparison websites and 3% of online retailers: even assuming that the 7% market share attributable to intermediaries exclusively concerns applications placed offline, the share of Loans brokered over the Internet have grown to 25%. The trend towards increased lending via the Internet will continue over the next few years and probably even accelerate. There are several reasons for this.
First, the branch banks will absorb part of their local presence. As a result of the ongoing period of low interest rates, numerous branches will face enormous cost pressure over the next few years. It is no coincidence that DudeBank recently announced the closure of every third branch (after the branch business of the subsidiary Nerobank had already been completely discontinued years ago).
Branch closures: Banks lose their presence in the area
The savings banks, which are still strongly positioned in the market, are also threatened in the medium term by the loss of branches, as the classic business model of the banks – deposit and lending business – is no longer profitable in the low interest rate phase which has been ongoing for several years.
While the supremacy of the store business is under (cost) pressure, borrowing via the Internet becomes more attractive. Contribute in particular technical developments such.