Industry Analysis & Industry Trends
Similar to the rest of the Finance subdivision in Australia, the Building Societies industry has been hit hard by the global financial crisis. Revenue is forecast to decline by an annualised 1.5% over the five years through 2011-12, while profit margins are expected to contract. Although their business model has enabled them to avoid incurring the large bad debt expenses that have plagued many other finance industries, industry players could not avoid the negative effect that the increased cost of funds has had on profitability. Industry revenue is forecast to decline by 9.6% in 2011-12, to total $1.73 billion.
The primary business segment is home loans, and building societies have managed to avoid a significant increase in bad debts by adopting a prudent lending approach... purchase to read more
Industry Report - Starting a New Business Chapter
The industry faces moderate barriers to entry. Those being, the regulatory requirements imposed on potential entrants, difficulty in accessing funds, the existing presence of building societies' branch networks in potential markets and the difficulty in attaining and retaining a loyal customer/member base.
The regulatory requirements imposed on building societies and any potential businesses wanting to enter the industry are highly stringent. This makes it difficult for new entrants to set up operations and compete successfully... purchase to read more