Not so interested: RBA cuts to the cash rate have caused industry revenue to decline

The Non-Depository Financing industry has operated in a challenging environment over the past five years. As the RBA sought to stimulate non-mining sectors of the economy by cutting the official cash rate to historic lows, interest revenue generated on industry operators' lending portfolios declined. Sluggish growth in lending volumes from the business sector has also dampened industry revenue growth. The banking sector's strength has also contributed to the fall in industry revenue over the period, given the dominance of banks in the lending market. The competition and scale of the banks has made it difficult for non-bank lenders to significantly grow their loan books and customer bases. Overall, industry revenue is expected to fall at an annualised 1.5%...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 13-18
-1.5%
Forecast Growth 18-23
Profit
Employment
9,382
Businesses
413
Market Share of Companies

Industry Threats & Opportunities

  • Revenue has declined due to competition from 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 industry growth
  • Industry Report - Industry Locations Chapter

    The distribution of establishments in the industry is highly correlated with the population and business activity of each state and territory. Densely populated regions of Australia, such as New South Wales and Victoria, are home to the largest proportion of establishments providing finance to businesses and individuals. A greater level of business and investment activity typically occurs in these regions and a higher number of people reside in these states. Therefore, demand for both personal and business finance in these regions tends to be greater.With interest rates declining, debt finance has become cheaper and more appealing for individuals and households. Financiers have sought to capitalise on this by setting up operations in close proximity to consumers. Wit...purchase to read more.

    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

  • 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. The industry also includes the leasing of 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
  • 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

  • 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
  • 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
    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
    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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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?

    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.

    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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