What determines demand in pawnshop market: 2023 trends
Three quarters of all contracts in pawnshops are concluded for an amount of up to 25,000 rubles, a little more than 60% — for a period of up to 30 days. Most pawnshop clients are middle-aged households. Most often, women use jewellery as collateral and there are significantly more men among car pawnshop clients.
The leading regions in the pawnshop market in terms of the size of the loan portfolio are Moscow, St Petersburg, the Karsnodar Territory, and the Rostov and Sverdlovsk regions. Additionally, in the regions, the demand for pawnshop loans depends not only on the population size, but also on other factors: market infrastructure, consumer behaviour trends, income growth.
Almost all large pawnshops see prospects in the development of online customer service. Already, about half of these market participants are resorting to various innovative methods — interacting with borrowers through a personal account, using online collateral evaluation, as well as using online pawn tickets.
More details about the pawnshop market trends in 2023 are available in the Bank of Russia analytics.