Within the personal loan market, certain distribution channels have performed better than others. Why have some channels grown well and others declined? What are the challenges to distribution and how will this market look in five years time? This report provides the key answers to how personal loan providers can improve their presence in the direct and indirect market.

• Sizes distribution channels for both secured and unsecured personal loans, examining the causes and trends behind these findings
• Sizes the intermediary market and looks at the performances of the main lenders within this distribution channel
• Gives insight into the future of personal loan distribution and how lenders could respond to current challenges

Direct distribution leads the way in terms of the sale of personal loans. In 2004, ?57.4 billion was advanced through direct channels, while only ?4.8 billion was sold through indirect means.

The use of the Internet for personal loans has been increasing each year. Datamonitor estimates that in 2004, online distribution constituted approximately 8.5 per cent of the total personal loan market, equivalent to ?5.6 billion in total advances.

As an increasing number of mainstream lenders enter the secured loan market, Datamonitor believes that direct distribution will play a greater role. In fact, Datamonitor forecasts that direct distribution will grow from 29.0 per cent in 2004 to 33.5 per cent by 2009f.

• Understand the intricacies of personal loan distribution, and how major players manage to succeed
• Learn more about how intermediaries choose their main lenders and what it takes to become a top lender
• Gain valuable insight into what personal loan providers can do to ensure their future position in the market