Industry Analysis & Industry Trends
Other Deposit Taking Financiers industry revenue is expected to decline in 2012-13 as the demand for credit remains subdued. Part of the reason for this is the reduced level of business investment. Furthermore, households have become net savers in a bid to reduce their debt levels, which ballooned during the pre-crisis days as Australians went on a debt binge.
Interest rates are relatively low, which has meant that the loans that are issued are generating less revenue. Combining this with a reduced volume of loans issued, IBISWorld expects the industry to suffer a decline in revenue of 2.2% in 2012-13. Another detrimental factor to the industry is the strength of the banking industry, which is controlling an alarmingly large share of the total loan book... purchase to read more
Industry Report - Industry Key Buyers Chapter
Industry concentration measures the relative dominance of the largest players that operate within the industry. This industry exhibits a low level of concentration, with the top four major players accounting for less than 20% of total industry revenue. The main reason behind this is the fact that this industry has a large number of participating enterprises, including finance companies, general financiers and pastoral finance companies. These businesses offer a wide variety of financial services and exist to fill gaps in the market place, servicing specific regions of Australia and meeting special needs of customers... purchase to read more