PROSPECTS AND OPPORTUNITIES
Consumer lending will benefit from lower interest rates
The consumer lending landscape in South Africa is poised to benefit from favourable economic conditions, which are expected to lead to lower interest rates during the forecast period. These conditions will be shaped by a steady return of inflation to the central bank’s target range of 3-6%, an influx of younger consumers entering the workforce, and increased spending confidence amongst middle-income groups.
Digitalisation will continue shaping the lending landscape
Digitalisation is expected to continue to reshape the landscape of consumer lending in South Africa by becoming the primary point of contact between borrowers and lenders. This trend will be further enhanced by improvements in connectivity, reduced data costs, and the full integration of fintechs into the banking system, granting them access to essential clearing and settlement processes.
Vulnerable households might face more risk of falling for predatory loans
The demand for informal loans surged during the review period due to rising living costs, pushing formal micro-lenders to become more risk-averse amidst challenging economic conditions. Therefore, when the National Credit Bureau indicated that up to 4,000 micro-lenders were at risk of losing their licenses due to non-compliance, it raised concerns that these operators might migrate to the informal market.
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Overview:
Understand the latest market trends and future growth opportunities for the Consumer Credit industry in South Africa 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 South Africa, 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 South Africa 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 South Africa?
- What are the major trends key to understanding Consumer Credit in South Africa?
- 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 South Africa - Category analysis
KEY DATA FINDINGS
Gen Z boosts demand for card lending
Debt councillors call for a revision of the Credit Act
More retailers are embracing buy now pay later (BNPL)
Consumer lending will benefit from lower interest rates
Digitalisation will continue shaping the lending landscape
Vulnerable households might face more risk of falling for predatory loans
Consumer Lending in South Africa - Industry Overview
Consumer lending in 2024: The big picture
2024 key trends
Competition intensifies as Discovery introduces home loan services
Buy now pay later continues to evolve as demand rises
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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