German consumers are in a buying mood – and have been for a number of years now. The economy is flourishing, jobs are secure and interest rates are at historic lows – all perfect conditions to boost consumption.
When the prices for cars, furniture, kitchen appliances and TVs exceed the household budget, some financial firms are eagerly standing by with short-term financing deals.
Such installment loans are enjoying growing popularity in a nation that has long been known for saving rather than spending its hard-earned money.
But not all financial firms are able to rub their hands in glee. Market watchers say that a massive shift is underway in the German banking landscape.
The winners are a new breed of banks that specialize in short-term installment loans – banks like Spain’s Santander or Germany’s Targobank.