Consumer finance provider
Jan 2017
Financial Services

NewDay is a leading UK consumer finance company, specialising in the near-prime and co-brands sectors of the UK credit card market.

NewDay operates two primary businesses:

  • Own-Brands which provides credit cards (operated under the aqua and marbles brands) designed to meet the needs of customers in the near-prime sector of the UK credit card market. The near-prime sector refers to customers who typically encounter difficulties accessing products such as credit cards from mainstream credit providers, but whose credit profiles are superior to subprime borrowers (near-prime customers are typically employed, but exhibit one or more additional characteristic, such as a "thin" credit history or a history of adverse credit events);
  • Co-Brands which provides co-branded credit cards and store cards in partnership with several UK's established retailers including Arcadia, Amazon, Debenhams, House of Fraser, Laura Ashley and TUI.

NewDay is an FCA authorized consumer credit firm and has developed innovative products and features to better meet the needs of both (i) its customers, by responsibly offering them the right credit services and (ii) its partners, by providing innovative digital capabilities and data analytics opportunities. NewDay's proprietary credit models draw upon customer and market data that have been gathered over more than 15 years of lending through all phases of the credit cycle.

Today, NewDay provides credit to more than five million customers and has £1.6 billion of receivables. The company is headquartered in London and employs more than 800 people.

Cinven's Financial Services team identified NewDay as well-managed, strongly-performing specialty lender leveraging (i) strong proprietary underwriting skills, (ii) well invested servicing platform and (iii) differentiated customer-focused Manifesto guiding strong customer engagement, credit performance and regulatory relationships.

Both near-prime and co-brand market sectors are underserved with significant potential for growth through both increasing receivables and attracting new customers / retail partners.

Cinven strategy is to support NewDay's development in these segments whilst continuing to enhance company's credit management, improving operational leverage and delivering against NewDay's Manifesto.

Cinven invested in NewDay alongside CVC Capital Partners.

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