News & Views - Savantor

Spending trend on the increase

Monday, 30 September 2013

Households' personal and credit card debts rose last month for the first time in four years on the back of surging consumer confidence. Figures from the British Bankers Association (BBA), showed that annual borrowing on personal loans and credit cards grew for the first time since 2009. However, despite the increase in consumer credit, households appear to be as keen as ever to get on top of their debts. Meanwhile, the total amount still owed on credit cards continues to grow, reaching a record high of £38.7bn.

The fresh appetite for consumer credit was taken as a sign of improving confidence. The level of unsecured borrowing grew by 0.3% over the year driven by a 6.7% rise in card borrowing and a 5.1% increase in personal loans and overdrafts. Net consumer credit between July and August grew by £100m to £80.1bn. Some £8.4bn of new spending was recorded on credit cards, while £8.3bn of repayments were also made. The latest figures from UK Card Association show:

Debit cards

·         91% of the UK adult population have a debit card. There are now almost 47 million card holders

·         Debit cards were used to make 7.7 billion purchases in the UK to a value of £337 billion

Credit cards

·         61% of the UK adult population have a credit card. There were just over 30 million credit cardholders

·         81% of all credit and charge card spending in 2012 was made by cardholders who repaid the balance in full. Around 40% of outstanding credit card balances bear 0% interest or are repaid in full each month

Contactless Cards

·         32million cards in circulation in the UK

·         120 contactless transactions per minute in March 2013 which is predicted to rise to 300 transactions per minute at the end of 2013.

While the improved economy is encouraging consumers to loosen their belts, they are still showing caution when it comes to essential purchases. The latest figures from Barclaycard have revealed that while consumer spending has increased in some areas, including restaurant (+13.3%), cinema and theatre spending (+8.1%) and hotel spending (+6.7%), consumers have actually cut back in several areas of everyday spending including clothing (-0.6%) and groceries (-0.1%).

 

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Payments Platform Strategy and Sourcing

"We were in urgent need of external independent expertise to supplement our internal resources. Senior consultants had to quickly integrate with our team and actively contribute. Their experts quickly forged strong working relationships and delivered to our brief. We enjoyed working with them to develop our future platform strategy."

Evert R Fekkes, SVP - Payment & Savings Services - Rabobank Nederland

New Fuel Card Guidelines

"Savantor successfully assisted Clear2Pay by providing specialist EMV expertise."

Marie Costers, General Manager - Clear2Pay Open Test Solutions

Credit Risk Review for New Product Launch

"We needed expert help at short notice and Savantor were very impressive in their response and knowledge. The results were very clear and useful, enabling us to quickly make good progress on the next steps."

Sami Karhunen, Head of Business Intelligence and SME Sales - Point Transaction Systems Oy - Finland

Issuer and Acquirer Transformation - Assessment and Mobilisation

"We were in urgent need of external independent expertise to supplement our internal resources. Senior consultants had to quickly integrate with a diverse team from across the bank and actively contribute. I am pleased to say that Savantor was able to deliver on our needs as well as being good people to do business with."

Lars Bostrom, Head of Cards - Nordea - Scandinavia

Platform Selection & RFP Management

"OP-Pohjola Group has used Savantor in both acquiring and issuing for platform/service provider research, RFI/RFP processes and subsequent contract negotiations. Savantor's approach and commitment have always been very professional and transparent. They have been of great help for the company in providing us important insights and background information beyond vendors sales speeches."

Kai Lindstrom, Head of Acquiring - OP-Services Ltd - Finland

Moneris Solutions

"Savantor did an outstanding job of the review and I received nothing but positive feedback on the interaction with our management team."

Jeff Guthri, COO - Moneris Solutions - Canada

Interchange Review

"Savantor did a superb job in confirming what we believed was an area of weakness. The detail we now have will enable us to agree internally what we need to do to improve structure, control and income. Nationwide management were very impressed with the quality of the Savantor team."

Adam Slater, Senior Manager - Banking - Nationwide Building Society - UK

Card Migration

"I was impressed by the speed with which the Savantor team were able to start delivering and as a team they have made a significant contribution to the success of the Programme."

Bjorn Niels, Programme Director - ABN AMRO Bank - The Netherland

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.