Industry Analysis & Industry Trends
The past five years has seen the Non-depository Finance Companies industry go from boom to bust, and over the next five it will fail to return to the heady heights of the pre-recession period. Rapid growth driven by a credit boom through the mid-2000s was wiped out when the credit bubble burst and the industry tumbled back to earth. The mortgage finance side of the industry was particularly hard hit, with a number of companies effectively shutting down in terms of new business: scaling back operations to merely focus on collecting on outstanding loans. After appearing to be on the way to recovery during 2010-11, the industry is expected to encounter another challenging year in 2011-12 as demand for credit weakens sharply and wholesale borrowing costs rise... purchase to read more
Industry Report - Industry Locations Chapter
The geographic distribution of the Non-depository Finance Companies industry is based primarily around the location of its customers. As its customers consist mostly of consumers and small businesses, the industry's geographic spread closely mimics the distribution of the population. London accounts for a slightly greater share of industry activity than its population would suggest, however. This is largely due to the way in which firms like General Electric (GE) provide consumer credit via relationships with major retailers. Although the consumers that they are providing credit to are distributed according to population, it is more beneficial for firms to be located close to head offices of the major retail chains in order to cultivate relationships... purchase to read more