Demand for loans and credit cards falls

Thursday, 13 November 2008 03:01

Moneysupermarket.com has reported the number of consumers seeking loans and credit cards on its site fell but visitors looking for savings products rose.

In an interim management statement, the group said it is trading in line with expectations for the year and has driven up revenues in insurance, now its biggest channel, by 30 per cent.

Home Services also performed well as revenues grew in excess of 100 per cent compared to 2007.

Utilities, in particular, performed strongly as consumers looked to shop around in the face of rising gas and electricity prices over the summer, the company said.

However, revenues in its money vertical declined 15 per cent from the third quarter last year as revenues from credit cards, loans and mortgages all fell dramatically.

Savings was the strongest performer, with the group attributing the rise to consumers anxious to spread their money around in order to take advantage of the protection afforded by the Financial Services Compensation Scheme.

The company also said it has found a replacement for First Plus, the Barclays subsidiary that was providing an exclusive secured loan product, with Platinum Loans.

Simon Nixon, chief executive of Moneysupermarket.com, said: "The third quarter was, as anticipated, a tough one. On top of the unprecedented banking crisis, which impacted both consumer demand and the supply of credit, we saw increased competitive pressure, particularly in insurance."

The group announced the appointment of Peter Plumb as its new managing director for the financial services business.

• Tags:
• loans
,
• news
,
• unsecured loan