Study: Personal Loan Market Sees Post-Pandemic Growth
The personal loan market is seeing a resurgence after slowing during the pandemic, according to a report released today by JD Power. The company’s 2022 U.S. Loan Consumer Satisfaction Study found that competitive rates, easy access and a variety of options have led to widespread consumer adoption of personal loans.
The study organizers highlighted four key takeaways from the results. Personal loans often provide lifelines for financially vulnerable people (38% of personal loan customers) to deal with debt, lower interest rates on current debt and lower monthly payments on existing debt. Lending encourages consumers to use other financial products, with 61% of lending customers likely to use their lender again. Advertising also plays a key role in attracting new customers to loan products, with 47% of consumers saying an advertisement prompted them to consider a personal loan. Additionally, the study revealed variations in how men and women respond to specific brand experiences. At the individual brand level, overall lender satisfaction varied by at least 25 points (on a 1,000-point scale) between men and women in more than half of the lenders in the study and by more than 50 points for almost a quarter of the marks.
Goldman Sachs’ Marcus received the highest customer satisfaction rating for consumer loans, with a score of 776 on a 1,000-point scale, followed by US Bank (757) and American Express (754).