Co-op Insurance has announced an expansion into the personal loans market through a partnership with ClearScore.
The move follows feedback from the company’s member-owners, who indicated a need for broader access to finance options.
The partnership enables Co-op members and customers to use ClearScore’s credit matching platform to access personalised credit solutions. Through the arrangement, both unsecured personal loans and secured loans are now available from a panel of selected lenders.
Members seeking a loan can compare tailored offers, with exclusive unsecured personal loan rates offered to member-owners by certain lenders.
Loan amounts vary according to the product. For personal loans, members and customers can borrow between £1,000 and £25,000, with repayment terms ranging from one to seven years. Secured loans are available in amounts from £10,000 to over £500,000, with repayment periods between three and 30 years.
Charles Offord (pictured above), managing director at Co-op Insurance, said the company is expanding its presence in the financial services market and explained the reasoning for such an initiative.
“Our member-owners have told us that they want to have greater access to finance, particularly loans, that could help to make paying for things such as home improvements or managing unexpected bills a little easier,” Offord said.
Co-op Insurance, part of the UK-based Co-op Group, operates under a member-owned, co-operative model. This structure means that member feedback directly shapes its products and services.
Research commissioned by Co-op Insurance found that 45% of its members considering a future loan would use the funds for home improvements. Nearly 29% said they would borrow to cover unexpected bills. The company said this data supported its decision to expand its financial services offering.
The timing of Co-op’s expansion into personal loans also reflects broader trends in the UK lending market. Gross personal loans lending is expected to have risen by almost a quarter in 2024, with continued growth forecast through 2029.
Demand remains robust, especially among those under 45, who are most keen to borrow in the next year. Lenders that promote strong customer satisfaction and flexibility are well-placed to attract these borrowers.
At the same time, the UK lending landscape is rapidly evolving as traditional banks lose market share to challenger banks and fintechs, who offer more convenient, personalised, and digital-first experiences. This shift is pushing established players like Co-op to innovate and expand their offerings to remain competitive.
That said, despite high demand, only 43% of consumers trust providers to offer the same interest rates they advertise, highlighting a need for greater transparency and better communication – areas where member-owned organizations like Co-op may have an advantage.
While interest rates have risen, demand for loans remains high, both for aspirational goals and debt consolidation. The market is also being shaped by inflation, changing consumer confidence, and regulatory updates.
In response, Co-op Insurance said that its loans panel is intended to help members and customers manage their finances and address unexpected expenses.
“We’ve listened to their feedback and with loans from Co-op, members and customers are now able to compare tailored loan offers from a panel of selected lenders,” Offord said.
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