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Sector Analysis
UK Consumer Credit: Forecasts and Future Opportunities to 2023
The UK consumer credit market experienced challenging conditions in 2019. Lending in 2020 is set to rise by 5%, but overall growth will remain flat at around 4-5% throughout the rest of the forecast period. This means gross advances are expected to total £372.4bn by 2023. The following factors will drive the market over the next few years: Supply side: Stricter lending criteria, high incidences of bad debts, and the Prudential Regulation Authority’s intent to impose a more stringent regulatory...
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Sector Analysis
New Zealand Retail Banking: Opportunities and Risks to 2023
The majority of New Zealand’s loan balances outstanding are from home loans, with residential mortgage balances outstanding accounting for 88.7% of total balances outstanding in 2018, followed by personal loans (8.7%) and credit cards (2.5%). However, high household debt and low consumer confidence are expected to negatively affect the growth of total loan balances outstanding in the coming years. As a result, we estimate the balances outstanding to grow at a lower CAGR of 6.4% over 2019-23. The New Zealand...
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Company Insights
Rabobank - Enterprise Tech Ecosystem Series
Rabobank has been focusing on using artificial intelligence, cloud, big data, mobile payments and blockchain to digitally transform its operations. The annual ICT spending of Rabobank was estimated at $1.2 billion for 2022. A major share of this spending is earmarked for acquiring software, ICT services and hardware from vendors. Rabobank offers global banking and other related financial solutions to commodity traders, large corporates, startups, financial institutions, and private equity firms. It provides a wide range of accounts, deposits, cards,...
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Sector Analysis
UK Mortgage Market 2019: Forecasts and Future Opportunities to 2023
The outlook for the residential mortgage market remained fairly neutral in 2019. Growth in gross mortgage lending is expected to be around 4.5% in 2020, which is broadly unchanged on 2019. During the forecast period (2019-23), gross advances are expected to record a compound annual growth rate of 5%, reaching £339bn. The supply side has been positively affected by the government’s schemes supporting first-time buyers, while stricter controls on buy-to-let lending will improve matters by reducing investor demand for properties....
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Track & Monitor
FinTrack: January 2020
The provision of financial services is constantly evolving, with new technology having a particularly significant impact. Innovations such as digital delivery, AI, biometrics, and robo-advice are enabling providers around the world to offer new and improved services to customers that will improve the way they manage their finances. The growing availability of these technologies is also making it easier than ever for new entrants to develop their own propositions and challenge the established providers. Every month, FinTrack showcases the latest...
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Sector Analysis
Retail Banking Market Dynamics: Canada 2018
Bank margins in Canada are on a downward trend, but are still well above comparable markets. Cost-to-income ratios have remained flat since 2010. Growth in credit card balances and mortgages will remain strong, although growth in personal loan balances will slow significantly between 2018 and 2022. The report identifies macroeconomic and competitive dynamics that have affected the Canadian retail banking market over the last year, and provides insight into - - The outlook for deposits, credit cards, personal loans, and...
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Sector Analysis
Retail Banking Market Dynamics: India 2018
Margins among Indian banks remained high at 6.3% in 2017 in comparison to its peers China (2.8%) and Malaysia (2.6%). The average cost-to-income ratio remained at around 53% during 2013-17, marginally higher than China (50%) and Malaysia (51%). However, there remain large disparities in operating efficiencies within the market. The same is also true for profitability, with large disparities in return on assets figures. This is due to rising compliance, regulatory, and other costs depressing net income, as well as...
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Sector Analysis
Retail Banking Market Dynamics: Taiwan 2018
The retail banking industry in Taiwan is highly fragmented, with almost 40 providers competing on very low margins. The current economic environment is unfavorable, and Taiwan’s average wage lags far behind other industrialized economies of Asia, such as Singapore and South Korea. The country faces heavy competition in sustaining itself as an export-driven manufacturing hub, forcing industries in Taiwan to keep wages low. And consumers have become very conservative financially. While deposits are growing the credit market has remained flat...
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Sector Analysis
UK Mortgage Market 2017: Forecasts and Future Opportunities
While the market has recovered well since the financial crisis, often growing by a double-digit percentage year-on-year, rising economic uncertainties will dampen the prospects for future growth over the coming years. During 2017-21, gross advances are expected to record a CAGR of 5.7%, reaching £327.0bn by the end of the forecast period. On the supply side, an increased supply of new homes, stamp duty relief for first-time buyers, and tighter controls on buy-to-let lenders will improve matters for first-time buyers...
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Company Insights
Banking Competitor Profile: HSBC
"Banking Competitor Profile: HSBC", benchmarks HSBC’s performance across current accounts, savings accounts, mortgages, and personal loans against the overall market. HSBC is one of the UK’s largest retail banks, and has improved its competitiveness in the savings and personal loans markets in recent years. However, it also suffers from lower-than-average performance with respect to Net Promoter Score and customer satisfaction across a number of its key products. The report offers insight into - - How HSBC’s customers choose and apply...
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