The World Of Consumer Credit After The Big Consultation.
As every year, consumer credit players gathered in Paris for the general meeting of the Association of Financial Companies (ASF). Main novelty of the edition: the credit conso has just started going up after 5 years of tumble. The point on this return in force of the credit conso and its evolution.
The increase in consumer loans
Consumer credit is the common denominator of the many specialized financing institutions within the Association des sociétés financiers (ASF). It is therefore a taste of hope that characterized the general assembly of this institution, when was mentioned the rise in consumer credit in 2018. According to the figures of the ASF, the credit conso would indeed have known a total variation of + 2.6% between April 2017 and April 2018. However, its various variations have experienced divergent trends: 18.9% increase for rental with option purchase of motor vehicle, + 1.7% for loans and a 4.4% decline in revolving loans.
These good figures should not obscure the fact that the annual production of new loans decreased by 22% compared to the high point of 2008, the result of a regulatory and legislative overbidding as of several years of economic crisis. Philippe Dumont, president of the ASF and head of CD Credit Consumer Finance (CDCCF), highlights in an interview with Echos the precarious balance of the sector, weakened by several restructurings. These include the integration of Laser Cofinoga by BNP Paribas Personal Finance, and the merger of Finaref and Sofinco into CDCCF.
The evolution of revolving credit
The figures presented by the Association of Financial Companies also highlight an in-depth reform of revolving credit, long considered the star of credit institutions. Suffering from a particularly damaged image after the crisis, accused of playing a leading role in household over-indebtedness, revolving credit is struggling to catch its breath. The Lagarde law of 2009 did not help, speeding up revolving account closures. They account for only 24% of consumer credit outstanding in 2018, compared to 31% in 2008. The median estimates also include a reduction in revolving credit to a threshold of 15 to 20% over the next few years. years.You have projects and want to subscribe a revolving credit? Take advantage of our advice and finance your projects at a competitive rate.
This overhaul inevitably has a positive aspect: the revolving consumer credit has returned to its “core business”, namely the management of cash and the financing of purchases of small amounts over short periods. Moreover, according to the ASF, 80% of the credits conso are now reimbursed in less than 36 months. Finally, the online credit sector can rely on a new growth driver: the lease with option to purchase (or LOA), which has been a huge success.