The economic situation of the UK remains difficult. While the rate of unemployment is one of the lowest in Europe, many people still receive low wages and real wages are lower than a decade ago. Changing the structure of work and employment arrangement led to people having non-stable incomes while having to deal steadily growing costs of living. What’s more, according to Statista, almost 74% of people in the UK are worried about unexpected expenses on a daily basis.

Key takeaways from the report: 

• 83% of payday loan customers have taken out a loan online - and this number is still growing
• The number of payday lenders has reduced following the introduction of the price cap regulation by the FCA.
• Growing employment and the number of businesses on the market is an opportunity to create more employee-centered B2B and B2C solutions
• Financial education is very important to reduce over-reliance on short-term credit to cater for living and emergency expenses
• While the current payday startups market is mostly US-oriented, the UK market still has plenty of growth potential
• Most existing fintech products help users manage their finances in advance, plan their budget, and pay bills online. This engages users and increases retention.