On 4 December 2015, NSF announced that it had entered into an agreement to acquire the branch-based unsecured lending and guaranteed loans business of Secure Trust Bank PLC for an enterprise value of £235 million. The transaction completed on 13 April 2016.
Everyday Loans is the market leader in unsecured branch-based lending and also has a scaleable presence in guaranteed loans. Focused on customers with limited or impaired credit histories, Everyday Loans has a high-quality loan book with relatively low impairments and excellent customer satisfaction levels.
The business operates from a network of 41 branches, serving almost 40,000 customers throughout the UK. The new branches added in 2016 are highlighted in orange.
Once their application has been screened and verified, eligible potential customers are invited in to their local branch for a face-to-face interview during which their applications are appropriately vetted including a detailed assessment of the customers’ propensity and ability to repay and all of their supporting documentation is verified.
Such an approach provides Everyday Loans with a significant advantage over online competitors that never meet their customers and so are less well-placed to conduct a face-to-face in-depth review of a customer’s credit quality. Meeting customers face-to-face is also a key driver of high customer satisfaction levels. Whilst having to visit a branch might at first be seen as burdensome, the vast majority of our customers end up enjoying the experience, increasing the likelihood that they might do business with Everyday Loans in the future and/or refer new customers to us.
Everyday Loans is led by Danny Malone, who co-founded Everyday Loans in 2006 and has 21 years’ experience in branch-based lending having previously been CEO of Citifinancial UK and CFO of Citifinancial Europe. Around him, Danny has assembled a highly experienced team, many of whom worked with him at Citifinancial.
Strategy for growth
Management is focused on driving future growth through execution of the following business strategies:
- Extending the product range – by returning to higher APR products, Everyday loans can offer credit to those with Widening the customer constituency – by applying the Company’s knowledge and experience in the sector and its extensive performance data, Everyday Loans will be able to serve a broader scope of potential customers; and
- Accelerating the branch expansion programme – so that existing and future customers are more able to find a branch in proximity to their community, thereby driving improved application conversion rates. Prior to its acquisition by NSF, Everyday Loans had opened just seven branches since 2012 but by using available capital and expertise, a renewed programme of branch expansion can support its sustainable growth.