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Demand for Non-Bank Financing Spikes in November

FINANCEDemand for Non-Bank Financing Spikes in November

In November, there was a clear increase in interest in non-bank financing. Compared to last year, the number of queries about customers applying for a loan increased by as much as 26 percent. However, the high demand does not translate into a sudden increase in sales. Lending institutions, excluding the BNPL segment, granted 324,000 loans amounting to PLN 1.12 billion last month, which compared to November 2022, means an increase of 4.1 percent in numerical terms, but at the same time a 15 percent decrease in terms of value.

High Demand for Loans

The November reading of the number of queries about customers applying for non-bank financing was the highest this year, amounting to exactly 1.037 million queries, which means an increase of 4.3 percent month-on-month and an increase of 26.7 percent compared to November 2022. According to the Foundation for Financial Market Development, the high interest in loans may result from numerous promotions and seasonal sales organized on the occasion of Black Friday, as well as the preparations for Christmas being started.

The Average Loan Value is PLN 3457

The number of consumer loans granted in November was 324,000, compared to 326,000 the previous month (-0.8 percent) and 311,000 in November 2022 (+4.1 percent). Meanwhile, the value of financing given was almost perfectly equal to the value from the previous month, totaling PLN 1.12 billion compared to PLN 1.124 billion in October (-0.3 percent). At the same time, this is a drop of 15.1 percent compared to November 2022 when lending institutions granted loans amounting to PLN 1.319 billion. The average value of a single loan in the previous month was PLN 3457.

BNPL Sales Break New Records

In October, for which the latest CRIF data is available, the deferred payment segment recorded a record level of activity. Finance providers in the buy now, pay later model provided financing worth PLN 363.5 million, which compared to September when this indicator was PLN 304.6 million, means an increase of 19.4 percent. Year on year, the increase is even higher, amounting to 44.3 percent. The number of transactions also increased significantly. In October, it exceeded 1 million, while in September it was 823,000, and a year ago it was 668,000. This means that in numerical terms, BNPL operators recorded a 23 percent increase month on month and a 51 percent increase year on year. The average amount of a single transaction was PLN 360.

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