2021 DEVELOPMENTS
Uncertainty over COVID-19 limits loan demand and increases defaults
The impact of the COVID-19 pandemic and consequent economic downturn has heightened demand for consumer credit in Russia. Driven by the economic context, consumer confidence and willingness to purchase expensive items with credit, such as cars, has dropped.
Despite governmental support, auto lending and educational lending will experience the weakest performance within consumer credit.
Auto lending in Russia was hit particularly hard by the COVID-19 outbreak, with sales of new cars crashing throughout the country and demand for loans plummeting. Car sales were already declining in the country before the pandemic, with the government supporting the industry with subsidised programmes.
Banks tightening policies and switching from quantity to quality
One of the effects of the pandemic is that banks have been tightening their policies regarding newly issued consumer loans. The declining number of approvals indicates that they have been adhering to an increasingly conservative policy when approving applications, especially for a higher sum of consumer credit such as those typical in auto lending.
PROSPECTS AND OPPORTUNITIES
Government and Central Bank of Russia support will be vital to aid the country in its post-COVID-19 recovery
In Russia, the development of consumer credit in 2022 and beyond will depend heavily on the rate of economic recovery post-COVID-19. Despite the severity of the recession, strong government support in response to the economic fallout of the pandemic will help to safeguard jobs and boost demand.
Leading lenders look to attract customers with enticing offers and improved experience
Russian banks, especially leading players, will continue to lower interest rates on loans in a bid to attract price-sensitive consumers. Banks are also developing better quality, more sophisticated, and more convenient credit products that cater to the needs of different consumer groups.
Further move to digital space seems inevitable
The COVID-19 pandemic has further fuelled consumer awareness and interest in digital solutions in daily life. It has also accelerated the already existing movement towards digital financing, which is reflected in the surging number of loan agreements completed, at least partly, online.
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Overview:
Understand the latest market trends and future growth opportunities for the Consumer Credit industry in Russia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Consumer Credit industry in Russia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Consumer Credit in Russia report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Consumer Credit in Russia?
- What are the major trends key to understanding Consumer Credit in Russia?
- How has COVID-19, recession and macroeconomic volatility impacted the market?
- How long will the market take to recover? What are the opportunities now?
- How will political context and shifting cultural values shape future growth?
- Where is future growth expected to be most dynamic?
Consumer Credit in Russia - Category analysis
KEY DATA FINDINGS
Uncertainty over COVID-19 limits loan demand and increases defaults
Despite governmental support, auto lending and educational lending will experience the weakest performance within consumer credit.
Banks tightening policies and switching from quantity to quality
Government and Central Bank of Russia support will be vital to aid the country in its post-COVID-19 recovery
Leading lenders look to attract customers with enticing offers and improved experience
Further move to digital space seems inevitable
Consumer Lending in Russia - Industry Overview
Consumer lending in 2021: The big picture
2021 key trends
Mortgages/housing driven by preferential loan programme and relatively low interest rates
Online channel continues to grow as players invest in their own digital development to provide a more attractive offer to consumers
What next for consumer lending?
DISCLAIMER
The following categories and subcategories are included:
Consumer Credit
- Auto Lending
- Card Lending
- Durables Lending
- Education Lending
- Home Lending
- Other Personal Lending
Consumer Credit
Non-mortgage consumer debt extended to individuals for personal or household use including installment loans and credit cards. Examples of consumer credit include auto lending, card lending, durables lending, education lending, home lending and other personal loans. Consumer credit includes both revolving and non-revolving credit.
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This report originates from Passport, our Consumer Credit research and analysis database.
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