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

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.


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 - Industry Key Buyers Chapter

The Non-Depository Financing industry exhibits a low level of market share concentration. The industry has a large number of participating enterprises, including finance companies, general financiers and pastoral finance companies, with no single company holding more than 10.0% market share. These businesses offer financing for a variety of purposes to satisfy the different needs of customers, filling the gaps in the market place and servicing specific regions of Australia.

Non-depository financiers typically service customers that are not otherwise covered by the banks, credit unions and building societies. This has limited their ability to expand into other markets, holding back growth in the industry's customer base. As ..

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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 Performance

Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets

Supply Chain
Products & Services
Demand Determinants
Major Markets
International Trade
Business Locations

Competitive Landscape

Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
industry Globalisation

Major Companies

Operating Conditions

Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance

Key Statistics

Industry Data
Annual Change
Key Ratios

Jargon & Glossary

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