Read the report from the banking association on installment and personal loans here.
57 percent of German installment loans come from the specialist banks in the banking association. Last year, the figure was 54 percent. In view of the crisis-related reluctance to consume, retailers "are now dependent on financing offers in order to be able to continue selling goods", believes association managing director Peter Wacket. The specialists are often particularly well positioned in this area, but also with regard to unsecured loans. By the end of July, the association members were able to increase their lending by 6.6 percent compared to the same period last year, while the market as a whole only grew by around.
At 9.5 billion euros, personal loans for unrestricted use recorded a large increase of 14.2 percent, but the vehicle financing segment remains the largest. It grew by 1.7 percent, while new registrations only increased by 0.2 percent. In the meantime, it seems that the car crisis has arrived in this country. "Customers are becoming more cautious with the news from southern Europe and are thinking longer about buying a car," says Ferdinand Dudenhöffer from the CAR Institute at the University of Duisburg-Essen. Car sales in Germany already slumped in July, and for August the Federal Motor Transport Authority reported 4.7 percent fewer new car registrations than in August 2011.
Overall, the banking association nevertheless expects its members to "continue their growth trajectory" in 2012. They can play to their strengths in car, electronics and furniture sales in particular. "Point-of-sale financing has become an integral part of German retail," believes Dr. Markus Preißner, Scientific Director of the Institute for Retail Research (IFH Cologne). In a survey conducted by the institute, every second dealer stated that many purchases would not even be made without financing. And almost three quarters of car dealerships would be much more affected by the financial crisis without credit offers. They are also seen as an important tool for marketing and customer loyalty.
However, many dealers criticize the bureaucratic effort involved. Any more and one in three dealerships and one in two car dealerships would reduce their financing offers. This is where the strength of some specialized credit banks comes into play: they relieve the burden on dealers by standardizing and automating the decision-making and processing with solutions such as the afb Credit Management Solution. POS advisors can quickly find their way around IT systems such as this one and can design conditions flexibly. On this basis, retailers and credit institutions will continue to benefit from each other in the future.
