BRADFORD-based lender Provident Financial has launched a pioneering marketing push for its online short-term loans business which it is challenging other providers to follow.

The 130-year-old company is running TV, radio and press advertising for its Satsuma Loans operation which it says are clearer and more transparent than the norm.

Provident says it has adopted a ‘grocery retail’ approach using product comparisons with other lenders to help customers choose. The ads compare Satsuma Loans to equivalent lenders in the market.

Satsuma Loans, which was launched in 2013 to provide an alternative to widely criticised payday lenders and boost the fortunes of the group’s flagging consumer credit business, is a similar approach to German-owned budget chain Aldi, which has successfully used comparison advertising to boost its market share at the expense of the major supermarket chains – including Bradford-based Morrisons.

Satsuma Loans believes that by taking a more ‘retail/grocery led’ approach to its advertising, it will help customers easily identify the best short term loan available and make a more informed decision .

Mark Stevens, Satsuma Loans managing director, said: “This retail-led approach to advertising will not only benefit the consumer by bringing total transparency but also the financial sector as a whole, as it will highlight those responsible lenders like us who are absolutely confident of their product being the most cost-effective.

“Satsuma Loans prides itself not only on offering the cheapest loans, but also on listening to its customers and quickly acting on feedback. To this end, it has also updated its lending service to allow customers to choose to repay their loans on a weekly or monthly basis.

“Some 60 per cent of our customers get paid monthly so it made sense for us to offer them a monthly repayment option too. It means we now provide the most flexible product on the market, at great prices. In addition, there are no hidden surprises because, whichever way customers choose to repay, they’ll never pay more than the amount we agree at the start of the loan.”

Satsuma Loans provides customers with up to £1,000, transferred straight into their bank account, with the option of repaying in either manageable weekly or monthly segments.

At the time of the launch Mr Stevens, a former Bradford & Bingley executive , said Satsuma Loan s had maintained Provident’s heritage of customer contact with a representative speaking to every customer before a loan is granted and handling any queries arising throughout the term of the loan.