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New Zealand Retail Banking: Opportunities and Risks to 2023

January 2020 | 41 pages | ID: NCB4AACBDC08EN
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New Zealand Retail Banking: Opportunities and Risks to 2023

SUMMARY

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 lending space is dominated by the big three banks: ANZ, ASB, and Westpac.

Total loan balances outstanding (including credit card balances, personal loan balances, and residential mortgage balances outstanding) in New Zealand recorded a compound annual growth rate (CAGR) of 6.7% during 2014-18 to reach NZ$291.57bn ($195.60bn).

However, they are facing increased competition from non-bank lenders, digital banks, and digital lending platforms that are breaking into the market and offering low interest rates as well as refined loan approval processes. The savings market in New Zealand recorded a CAGR of 7.3% over 2014-18 to reach NZ$180.33bn ($120.98bn) in 2018. The weakening economic situation has led customers to save more.

Based on our proprietary datasets, this report analyzes the New Zealand lending market, with a focus on the consumer lending segment. The report discusses in detail the credit card, personal, and mortgage loan markets, covering market size, competitors’ market shares, and survey insights. The report also provides a market overview and insights on the retail deposit segment. In addition, it covers the key digital disruptors in New Zealand’s retail lending segment.

SCOPE
  • Mortgage loan balances in New Zealand recorded a CAGR of 7.1% during 2014-18 to reach NZ$258.69bn ($173.55bn), supported by increases in average annual wages and house prices, as well as a fall in the unemployment rate.
  • The personal loan market in New Zealand recorded a CAGR of 3.9% during 2014-18 to reach NZ$25,456m ($17,077.44m). The recent rise of non-bank lending institutions has played an increasing role in the growth of consumer loans.
  • The credit card market saw lower growth compared to the personal loan and mortgage balance markets in New Zealand. Credit card balances outstanding in the country recorded a CAGR of 3.3% during 2014-18 to reach NZ$7,428m ($4,983.16m).
REASONS TO BUY
  • Make strategic decisions using top-level historic and forecast data on the New Zealand retail lending industry.
  • Identify the most promising lending segment.
  • Receive detailed insights into lending in New Zealand, including consumer lending.
  • Understand the changing market and competitive dynamics by learning about new competitors and recent deals in the retail lending space.
  • Receive comprehensive coverage of the retail deposit market in New Zealand.
Macroeconomic Overview
Consumer Lending: Mortgage Loans
Consumer Lending: Personal Loans
Consumer Lending: Credit Card Loans
Retail Deposits
Digital Disruptors
Recent Deals
Appendix

COMPANIES MENTIONED

ASB
Heartland Bank
ANZ (New Zealand)
Westpac (New Zealand)
SBS Bank
BNZ
Kiwi bank
HSBC (New Zealand)
TSB Bank
Harmoney
LayBuy
PledgeMe
Spotcap New Zealand Ltd
Go Car Finance Limited
First Mortgage Trust
Avanti Finance
Branded Financial Services


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