Slowing down: Regulatory constraints and a cooler housing market have weighed on growth

The industry is expected to grow at a compound annual rate of 2% over the five years through 2018-19 to £6.2 billion. Growth has been supported by robust improvements in the housing market during the first two years of the period and expanding demand for consumer credit. Difficulties associated with securing funding from conventional lenders have also had a positive influence on the industry’s performance. In addition, the level of funding available to industry operators has increased, supporting industry growth. Nevertheless, due to the diverse nature of the industry, demand conditions differ considerably between different segments...read more.

Industry Statistics & Market Size
Revenue
£6.2bn
Annual Growth 14-19
2.0%
Forecast Growth 19-24
Profit
Employment
25,786
Businesses
1,081
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Growth has been curtailed by government legislation and prevailing economic concerns
  • More stringer regulatory requirements have lowered risk, which has been beneficial for the industry
  • An improving housing market is expected to support demand over the coming years
  • Industry Report - Industry Products Chapter

    Mortgage financingThe largest segment of non-depository finance lending goes towards house purchases, either for occupation or as investments. Demand increased robustly during the first two years of the five-year period through 2018-19, but eased from 2016-17 due to economic woes associated with the referendum result. As a result, this segment's share of revenue is expected to fallen slightly during the past five years. Consumer creditThe second largest segment involves providing consumers with credit so they can purchase goods and services. A large part of this is sales financing for items such as cars and white goods. Ret...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

  • Superior financial management and debt management
  • Ability to raise revenue from additional sources
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Consumer confidence index and Official bank rate 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?

    This industry includes companies that lend money or otherwise grant credit. These organisations do not fund their lending through deposits as a bank or building society would. Instead, they sell bonds and shares and sell loans on to other companies. Participants range from non-depository mortgage finance companies to pawnshops.

    Industry Products
  • Mortgage financing
  • Consumer credit
  • Business loans
  • Payday loans
  • Industry Activities
  • Mortgage lending
  • Consumer credit granting
  • Business lending
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer confidence index
  • Official bank rate
  • Ratio of household debt to disposable income
  • Number of residential property transactions

  • Current Performance
  • Demand variations
  • Funding rises
  • Margins widen
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand widens
  • Margins improve
  • 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
  • Construction
  • Renting and Operating of Own or Leased Real Estate
  • Consumers

  • Key Selling Industries
  • General Insurance
  • Investment Trusts
  • Pension Funding

  • Products & Services
  • Mortgage financing
  • Consumer credit
  • Business loans
  • Payday loans
  • Chart: Non-Depository Financing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers
  • Businesses
  • 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
    ProfitInterestWagesLoan impairment provisionPurchasesOther
  • Chart: Cost Structure Benchmarking – Sector vs Non-Depository Financing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Non-Depository Financing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Asset-Backed Security (Abs)
  • A financial product that includes an asset as collateral.
  • Loan Impairment
  • When it becomes unlikely that a creditor will be able to collect the full value of their loan.
  • Wholesale Funding
  • Funding from the sale of securities such as RMBS and corporate bonds to institutional investors.
  • What Our Customers Say

    Why buy this report?

    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.

    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 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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