Deko data reveals that spend in healthcare accounts for a third of credit applications in 2018
Demand for consumer finance in the healthcare sector is in extremely rude health, according to retail finance technology provider Deko, which today revealed that healthcare-related credit applications have accounted for more than a third (34 per cent) of its total business in 2018, to date.
A leader in smart retail finance technology for the past 10 years, this month Deko processed its two millionth consumer finance application, representing a total gross loan volume approaching £2 billion.
Deko has reported a 3 per cent year-on-year increase in demand for consumer credit in the healthcare sector. Applications for credit for dental procedures now make up more than a fifth (21 per cent) of its business, with an average basket value of £7,226.
According to new insights, the typical customer looking to spread the cost of dental procedures are females (53 per cent), people who are single (52 per cent), those renting a property (39 per cent) and people aged 25-34 years old (36 per cent). People aged 45-64 years old also had a strong propensity to opt for credit (30 per cent).
From a wider healthcare perspective, including non-evasive cosmetic surgery, specialist treatments, hair transplants and cosmetic surgery, customers are overwhelmingly female (82 per cent), people who are single (61 per cent) and those in the 35-44 age bracket (44 per cent). The average basket spend in this sector is £2,793. Kaye Rickards, Head of Sales and Marketing from Deko, said: “The UK has seen significant growth in the self-pay healthcare market overall, with 25 per cent annual growth reported in 2017, according to an industry study – this shows no signs of slowing down.
“For many, the avoidance of long waiting times, convenience and immediate access to a wide range of treatments, has an overwhelming appeal. As a result, over recent years we have seen a steady growth of people looking to spread the cost of private healthcare treatments by opting for consumer finance.
“The growth in popularity of cosmetic dentistry procedures, such as whitening, straightening and veneers, has seen people willing to invest considerable sums of money into what they see as a long-term investment in their appearance. The fact that the results of these procedures last for many years, coupled with the cost of cosmetic dentistry, makes consumer finance in this sector extremely appealing.
“What is clear from our latest consumer insights is that the way people view healthcare is changing, but so is the way that they view consumer credit as a whole. Flexible payments are not just confined to the retail sector – today’s consumers, especially those in the 25-34 age bracket, want the option to spread the cost on all types of purchases – whether that is a holiday, a professional training course or a cosmetic procedure.”