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Viewing report
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Personal Lending in Australia 2010
Datamonitor, Nov 2010, Pages: 46
The Australian personal loan market is currently growing, after being held back by the uncertainty of the global financial crisis. This report analyzes consumer issues in the personal loan market, including comparisons with the potential substitute that credit cards constitute. The report uses consumer survey data as well as interviews with bank executives.
Scope:
- Provides discussion and analysis of several key issues facing Australian consumer credit lenders.
- Analyzes the competition facing the personal loan market from credit cards.
- Discusses new developments in the personal loan market.
- Includes market share data of the major competitors.
Highlights:
Personal loans are medium involvement products, in that customers commonly conduct relatively little or no research into the available providers, but instead go to their main financial institution. Cross-selling has thus traditionally been the dominant method of reaching customers for the major banks.
Credit cards are more likely to act as substitutes for personal loans for amounts of A$10,000 and below. Balance transfer offers, which provide an added incentive for consumers to choose credit card debt over personal loans, are forecasted to become more common again in the next 12 months.
An important reason for the recent resurgent popularity of personal loans has been the addition of product features usually associated with other products. For example, by adding redraw facilities and allowing more flexible repayment options, personal loans have become flexible in a manner comparable to credit cards.
Key questions answered:
- What are consumers looking for when choosing a personal loan, and how can the target group be better understood?
- How has the personal loan market changed over the last year?
- How can personal loan products be better tailored to cusotmer needs?
- How have market shares and competitor positioning changed over the last year?
- What developments are forecasted in the personal loan market and how can they be anticipated?
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