A Yorkshire-based lender reports an increase in business activity alongside a perceived improvement in consumer confidence as it approaches its 24th year in operation.
The One Stop Money , founded in 2002, initially operated as a broker before transitioning into a direct lender in 2005. Its evolution mirrors broader changes across the UK’s consumer lending landscape over the past two decades.
“Initially, we started as a broker,” says the company’s founder. “The laws at that time were very loose in the industry, with limited checks required when people applied for finance.”
“However, the consumer loans industry has grown significantly since then with the greater adoption of online and mobile phones allowing customers to apply and lenders to provide loans nationally without the need for physical nationwide offices. This has resulted in the expansion of the high-cost short term industry which was valued at £2 billion at its height of 2010. Lenders advertised heavily on TV, radio and buses with catchy jingles, many were able to take advantage of the relaxed regulation and scaled at incredibly fast rates, often charging rates that were high compared to mainstream banks.”
According to FCA data, the number of high-cost short-term credit loans issued annually fell sharply following the introduction of regulatory caps, declining by more than 50% in the years after implementation. At the same time, lenders have been required to meet more rigorous standards around transparency and responsible lending, contributing to a more disciplined operating environment across the sector.
The FCA’s Impact to Consumer Lending
However, the Financial Conduct Authority (FCA) took over as the regulator for financial products in 2015 and quickly introduced strict rulings including full authorisation needed for participating firms in the consumer lending space, a price cap of 0.8% per day and stringent checks for any applicant prior to approval and funding.
To provide broader context, industry data from the UK’s Financial Conduct Authority (FCA) highlights the scale and evolution of the consumer lending market.
According to the FCA, there are millions of active consumer credit accounts across the UK, with lenders required to meet strict affordability and transparency standards introduced over the past decade.
The regulator has also noted a significant reduction in high-cost short-term lending volumes since the introduction of price caps and tighter compliance requirements, reflecting a shift toward more controlled and consumer-focused lending practices. This wider regulatory framework has contributed to a more structured environment for both lenders and borrowers, supporting greater consistency across the sector.
More broadly, UK Finance data indicates that total outstanding consumer credit in the UK has exceeded £200 billion in recent years, reflecting sustained demand despite tighter regulatory controls and ongoing economic pressures. This underscores the continued role of consumer credit as a financial tool for households managing short-term liquidity needs.
Against this backdrop, individual lenders are operating within a more clearly defined regulatory environment.
The Emergence of a Strongly Regulated Industry
The shift toward stricter regulation has resulted in a more structured and compliant industry environment. Lenders are now required to carry out comprehensive affordability and credit checks, ensuring that products are aligned with borrowers’ financial circumstances.
As a result, only firms able to meet stringent regulatory standards have remained active in the sector, contributing to improved consistency and oversight compared to the pre-2015 landscape.
“The great thing is that consumers feel comfortable and confident with who they borrow from and as a lender, we have a clear structure in terms of who we can and cannot lend to.”
When asked whether the demand for personal loans is growing amidst the cost-of-living crisis, the founder answered: “Demand for personal loans remains resilient, particularly in the context of ongoing cost-of-living pressures.”
Depending on their personal situations and the state of the economy, people may look for facilities through loans or credit cards to top them up, especially in emergencies. Being able to access an online facility and receive funds in 24 hours will always have its place. The expansion of digital lending platforms has further accelerated access to credit, with streamlined application processes contributing to faster decision-making and disbursement times. But looking at the industry 24 years on, we can say that consumers have more confidence in the safety and security of the product than ever before.”
Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or legal advice. The views expressed are those of the author and are based on publicly available information and industry observations. Readers should conduct their own research or seek independent professional advice before making any financial decisions.
