PROSPECTS AND OPPORTUNITIES
Outstanding balance set to steadily increase over the forecast period
While interest rates have steadied in Australia, consumers’ outstanding debt is still expected to rise over the forecast period. This trend will be driven by the expected increase in demand for education lending from Australians.
Alternative lenders expected to gain further share as consumers look for competitive deals
Loyalty to major banks for consumer credit is waning in Australia, with the proportion of consumer credit owed to an alternative financial services provider expected to increase over the forecast period. Consumers are starting to search for better interest rates when looking to take out any type of loan and have found that non-traditional lenders often have better rates and deals than the major banks.
Auto lending set to stagnate over the forecast period
Value growth of auto lending (at constant 2024 prices) in terms of both gross lending and outstanding balance is expected to be low over the forecast period. Data from Euromonitor International’s Passport shows that light vehicle sales are in decline in 2024, further supported by the Voice of the Consumer: Lifestyles Survey (fielded January to February 2024), which indicates that over half of Australian consumers will not be purchasing a new car during the year.
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Overview:
Understand the latest market trends and future growth opportunities for the Consumer Credit industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Consumer Credit industry in Australia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Consumer Credit in Australia report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Consumer Credit in Australia?
- What are the major trends key to understanding Consumer Credit in Australia?
- How has COVID-19, recession and macroeconomic volatility impacted the market?
- How long will the market take to recover? What are the opportunities now?
- How will political context and shifting cultural values shape future growth?
- Where is future growth expected to be most dynamic?
Consumer Credit in Australia - Category analysis
KEY DATA FINDINGS
Consumer credit shows signs of slowing after significant growth in 2023
More stable interest rates in 2024 help consumers repay debt
Growth of BNPL starts to slow amidst economic downturn and tightening regulation
Outstanding balance set to steadily increase over the forecast period
Alternative lenders expected to gain further share as consumers look for competitive deals
Auto lending set to stagnate over the forecast period
Consumer Lending in Australia - Industry Overview
Consumer lending in 2024: The big picture
Australian government implements new measures to provide some relief to student debt holders
Non-major bank home loan providers cut their rates despite no changes to the cash rate
Major banks call for reform in lending restrictions to ease access to loans for first home buyers
What next for consumer lending?
DISCLAIMER
The following categories and subcategories are included:
Consumer Credit
- Auto Lending
- Card Lending
- Durables Lending
- Education Lending
- Home Lending
- Other Personal Lending
Consumer Credit
Non-mortgage consumer debt extended to individuals for personal or household use including installment loans and credit cards. Examples of consumer credit include auto lending, card lending, durables lending, education lending, home lending and other personal loans. Consumer credit includes both revolving and non-revolving credit.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Consumer Credit research and analysis database.
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