Consumers are on the whole satisfied with their providers, but more can be done to deliver better customer outcomes.
London, UK (PRWEB UK) 14 July 2016
A report released today by Smart Money People finds that overall satisfaction with consumer credit providers is 87%, although this falls to 80% when consumers rated the value for money offered by providers.
Although strong headline figures, with some 12% of consumers feeling unfairly treated, 9% feeling like they’ve been lent too much money, and ‘desperation’ compelling 6% of consumers to seek credit, the report demonstrates that there’s still scope to deliver better customer outcomes.
At times heralded as a potential alternative to payday loans, the report found high levels of awareness about Credit Unions (79%), but that Credit Unions have not done enough to address the way consumers want to engage and buy consumer credit to mount a credible challenge. Some 55% of consumer credit buying decisions are determined by recommendations, good service and ease of use, with 87% of consumers now preferring to use digital channels to engage with consumer credit providers.
‘Good interest rates’ were viewed as the primary factor influencing buying decisions by just 9% of consumers, while the ‘transparency and trustworthiness’ of a provider was cited as the most important factor influencing buying decisions by 10% of all respondents.
Mike Fotis, Founder of Smart Money People said: “We set out to deliver a comprehensive look into how customers are being treated by consumer credit firms in 2016 and to really get under the hood of this fast moving industry. Our findings have generated much food for thought. While it’s certainly encouraging to see that on the whole consumers are satisfied with their providers, more can be done to deliver better customer outcomes.”
Mike continued, “Our report also suggests that younger consumers are less likely to feel unfairly treated. For example, some 44% of payday loan customers are classified as young, free and single, but this group accounted for just 29% of all customers who told us that they had been unfairly treated by payday loan providers.”
2,511 consumers shared their experiences of consumer credit firms in H1 2016.
The report can be viewed here: https://smartmoneypeople.com/consumer-credit-dashboard
Notes to Editors
1. 2,511 consumers shared their experiences of Consumer Credit firms in H1 2016
2. Respondents were largely self-selecting and located across the UK. All respondents participated via the Smart Money People online platform
For further information or comment, please contact:
Mike Fotis, Smart Money People
T: 0191 211 1939 (M: 07533 158 107)
About Smart Money People
Launched in October 2014, Smart Money People is the UK’s only review and insight platform focused solely on financial services. Smart Money People is on a mission to help increase trust and transparency in financial services. Based in Newcastle-upon-Tyne, Smart Money People has become a leading source of independent consumer insight in financial services. Smart Money People was founded by Mike Fotis, an ex-Deloitte financial services consultant and graduate of the University of Cambridge.