Reduced cash flow: Industry revenue growth slows as the housing market weakens

The industry is expected to grow at a compound annual rate of 1.4% over the five years through 2019-20 to £6.3 billion. Growth has been fuelled by steady improvements in the housing market expanding demand for consumer credit during the first year of the period. However, revenue expansion dampened sharply from 2016-17, as economic concerns associated with the referendum vote and the 3% hike in stamp duty imposed on buy-to-let properties and second homes from April 2016 had a negative influence on the UK housing market, and weighed on demand for mortgage financing. Nevertheless, difficulties associated with securing funding from conventional lenders had a positive influence on the industry’s performance and allowed the industry to expand...read more.

Industry Statistics & Market Size
Revenue
£6.3bn
Annual Growth 15-20
1.4%
Forecast Growth 20-25
Profit
Employment
24,569
Businesses
1,088
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • A weak housing market in the current year is expected to limit industry revenue growth
  • The availability of funding has improved, but remains below levels recorded prior to the financial crisis
  • Stringent regulations introduced during the previous period are expected to weigh on payday lenders
  • Industry Report - Industry Locations Chapter

    The geographic distribution of the Non-Depository Financing 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.LondonLondon is the most concentrated region, with approximately 21.7% of industry establishments being located in the region. London accounts for a greater share of industry establishments than its population would suggest, however. This is largely due to the way in which firms provide consumer credit via relationships with major retailers. Alt...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 trends
  • Funding improves
  • Margins expand
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand improves
  • Margins widen
  • Potential problems
  • 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
    ProfitWagesPurchasesMarketingMarketing and advertising costs are estimated to account for 2.1 % of industry revenue in 2019-20. Operator spend on marketing and advertising activities to increase brand awareness and attract new customers. RentRent is anticipated to account for 2% of industry revenue in 2019-20. Operators rent space to establish offices. UtilitiesUtilities are estimated to absorb for 1.5% of industry revenue in 2019-20 and relate to electricity, gas and water charges. DepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Non-Depository Financing

  • Basis of Competition
  • Internal competition
  • External 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 (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Asset-Backed Securities (Abs)
  • Financial products that include 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 residential mortgage-back securities 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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