Overview

Cash strapped: RBA cuts to the cash rate have caused industry revenue to decline

The Non-Depository Financing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Revenue will decline due to the strength of the banking sector, and lower interest rates
  • The difference between industry borrowing and lending rates has helped increase profit margins
  • Personal and housing finance is expected to be the main source of growth for the industry

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    Industry Analysis & Industry Trends

    The Non-Depository Financing industry has operated in a challenging environment over the past five years. As the RBA tried to stimulate non-mining sectors of the economy by cutting the official cash rate to historic lows, interest revenue generated on industry operators' loan books declined. Sluggish growth in lending volumes from the business sector has also stifled industry revenue growth.

    The strength of the banking sector has also contributed to the fall in industry revenue, given the dominance of banks in the lending market. The competition and scale of bank lenders have made it difficult for industry operators to grow their loan books and customer bases, adding to the industry's decline. Industry revenue is expected to fall at an annualised 2.9%...

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    Industry Report - Starting a New Business Chapter

    Barriers to entry in the Non-Depository Financing industry are considered to be steady and at a medium level. Unlike major banks, industry operators have relatively less stringent regulations to comply with, making it easier to establish operations in the industry than in banking and other more regulated finance industries. However, there are large capital investment requirements imposed on firms that are seeking to build their brand and operate competitively. Access to large sums of capital is essential to a firm’s ability to service the needs of their customers, who require varying levels of financing for personal and business purposes. Fur..

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    Additional Insights for the Non-Depository Financing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Non-Depository Financing Industry are

  • Undertaking technical research and development
  • Access to highly skilled workforce
  • Having an extensive distribution/collection network
  • 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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    Industry Products

    What is the Non-Depository Financing Industry?

    The Non-Depository Financing 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. The industry also includes the leasing of plant, equipment and machinery on a financial service 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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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
  • Mining slowdown
  • 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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Agribusiness
  • Organic Farming
  • Consumers

  • Key Selling Industries
  • 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
  • Administration market
  • Mining, construction and manufacturing industries
  • Chart: Major Market Segmentation for the Non-Depository Financing Industry

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

  • Basis of Competition
  • Internal
  • External

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

  • Industry Globalization
    Major Companies
    Toyota Finance Australia LimitedBMW Australia Finance Limited
  • Table: Toyota Finance Australia Limited - financial performance
  • Table: BMW Australia Finance Limited - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Non-Depository Financing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Collateral
  • Property or assets that are pledged or offered to the financier to secure a loan.
  • Leverage
  • The amount of debt used by a firm to finance its operations or to purchase assets.
  • Tenor
  • The term length of a loan or its repayment period.
  • Why buy this report?

    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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