Drawing interest: Rising demand for housing finance supports industry revenue growth

The Non-Depository Financing industry has operated in a challenging environment over the past five years. As the RBA sought to stimulate the economy by cutting the official cash rate to historic lows, interest revenue generated on industry operators' lending portfolios declined for the majority of the period. Sluggish growth in lending demand from the business sector has also constrained industry revenue growth over the past five years. The banking sector's strength has also weighed on industry revenue growth over the period, as banks continue to dominate the lending market. Strong competition and the banks' significant scale have made it difficult for non-bank lenders to significantly grow their loan books and customer bases over the past five years...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 14-19
3.6%
Forecast Growth 19-24
Profit
Employment
9,239
Businesses
396
Market Share of Companies

Industry Threats & Opportunities

  • Rising demand for personal loans and housing finance have supported industry revenue growth
  • The difference between industry borrowing and lending rates has helped boost profit margins
  • Personal and housing finance are anticipated to be the main sources of industry growth
  • Industry Report - Industry Investment Chapter

    The Non-Depository Financing industry displays low capital intensity. For every dollar paid as wages in 2018-19, industry operators will spend an estimated $0.05 on capital investment. Employees play a crucial role in providing customer service to both retail and commercial clients. Technological changes have improved the industry's operational efficiency, as firms have automated certain processes and increasingly used mobile and online platforms to deliver financial services. However, the industry's capital intensity remains low given the importance of customer service and the skilled and experienced staff required for loan issuance. Certain downstream industries also require specialist knowledge and expertise to match clients with suitable financing solutions. Oth...purchase to read more.

    Additional Insights for the Non-Depository Financing Industry

    IBISWorld has determined the most important Key Success Factors for the Non-Depository Financing are:

  • Access to highly skilled workforce
  • Having an extensive distribution/collection network
  • Financial position of the company (as against financial structure)
  • IBISWorld analysts also discuss how external factors such as Cash rate and Capital expenditure by the private sector in the Non-Depository Financing industry impact industry performance..

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    What's in this report

    What is the Non-Depository Financing Industry?

    The industry includes financiers that lend money or provide credit to retail, corporate and wholesale customers. Financiers in the industry raise funds through wholesale channels and do not incur the liabilities of deposits. Industry businesses also lease plant, equipment and machinery on a financial services basis. Deposit-taking financial institutions are excluded from the industry.

    Industry Products
  • Personal loans
  • Commercial loans
  • Finance leases
  • Housing finance
  • Industry Activities
  • Lending to businesses and individuals
  • Lending to corporate customers
  • Providing finance to rural producers
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Cash rate
  • Capital expenditure by the private sector
  • Business confidence index
  • Household savings ratio

  • Current Performance
  • Demand for credit
  • Profit margins
  • Chart: Revenue Growth

  • Industry Outlook
  • Lending environment
  • Structural shifts
  • Table: Non-Depository Financing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Non-Depository Financing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agribusiness
  • Organic Farming
  • Consumers

  • Key Selling Industries
  • Accounting Services
  • Debt Collection

  • Products & Services
  • Commercial loans
  • Personal loans
  • Housing finance
  • Finance leases
  • Chart: Non-Depository Financing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Personal finance market
  • Other industries
  • Service industries
  • Mining, construction and manufacturing industries
  • Chart: Major Market Segmentation for the Non-Depository Financing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Interest expenses
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Non-Depository Financing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Non-Depository Financing Industry

  • Industry Globalization
    Toyota Finance Australia Limited,
  • Table: Toyota Finance Australia Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Non-Depository Financing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Non-Depository Financing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Total Assets (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Collateral
  • Property or assets that are pledged or offered to the financier to secure a loan.
  • Maturity
  • The date on which the loan is fully repaid by the borrower.
  • Tenor
  • The term length of a loan or its repayment period.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Non-Depository Financing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Non-Depository Financing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Non-Depository Financing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Non-Depository Financing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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