We have the capability to support growing demand

Market trends support Morses Club’s strategy

We see growing demand for our products and services as increases in the cost of living bite and are set to continue. At the same time, customers have fewer options as the number of providers has fallen significantly. As the leading regulated provider in this space, we feel great responsibility to work with the regulator to address the issue of growing numbers seeing no option but to turn to unregulated sources of credit.

Morses Club is a major provider in the fragmented HCC market

The need to comply with increasingly stringent regulatory requirements and to invest in technology to facilitate the assessment of affordability and other administrative processes, present significant barriers to prospective market entrants. These factors have also led to some existing participants choosing to leave the sector.

Source: ONS, OBR

  • Demand for high-cost credit is driven by individuals who are in low-paid, insecure work. A key driver, therefore, is the labour market.
  • However, despite higher overall employment, increased temporary and part-time working is likely to have led to higher demand.
  • There has been significant growth in numbers of adults who are working part-time while looking for full-time employment, or are on zero-hour contracts. These are described in official statistics as ‘underemployed’.

Note: underemployed defined as workers who are employed but wish to work more hours. Forecast based on historical relationship with unemployment

Source: ONS / OBR EFO October 2021

  • The chart shows that overall household debt has remained high relative to household income during the period since 2018, and that it stopped falling after 2015.

"Trading throughout the year was strong in the context of robust demand for lending. We remain focussed on delivering the opportunity to develop our future."

Gary Marshall Chief Executive Officer