Consumer Credit in Italy - Competitive performances and market shares

Databank Cerved Group, July 2012, Pages: 21

This report supplies information on the competitive performances of the operators of the Consumer Credit Italian market: competitive performances by segment, market shares by segment, by distribution channel, breakdown by geographical area, production shares and export quotas by destination countries are studied in depth in this report.

Scope
Regulations define consumer credit as the disbursement of between Euro200 and Euro75,000 in credit to a consumer through deferred payment, loan or other credit facility.

- Product technology: transactions are almost always carried out through the use of information technology. Some operations within the personal loans and income-backed loans segments are predominantly carried out through the use of paper documentation, however.

- Function: financing of consumer spending within the limits established by a dedicated law.

- Client groups: direct customers : individuals for personal lending, income-backed loans and revolving credit cards; Dealers : dealers and storekeepers in the segments relating to secured financing and revolving credit cards.

Segments

The most common segmentation of financing distinguishes between the technical forms adopted for the disbursement of credit, specifically:

- SECURED LOANS: loans for the acquisition of a specific product through repayment in instalments. The amount financed is paid to the merchant, who manages the relationship with the consumer and receives a commission on the loan from the issuing company (this category includes revolving secured financing). Secured loans are further segmented between CAR LOANS (financing for the acquisition of cars and motorbikes) and OTHER SECURED LOANS.

- PERSONAL LOANS: financing is issued directly to the consumer along with a pre-defined repayment plan, or alternatively, the credit can be used and repaid with greater flexibility within the maximum agreed limit (this is known as a revolving credit line).

- REVOLVING CREDIT CARDS/ INSTALMENT CARDS: (hereafter REVOLVING/ INSTALMENT CARDS) consumers' acquisitions are financed directly through the use of a card with a magnetic strip, which is also used as the instrument of payment. Credit is repaid in instalments. In revolving cards, there is a minimum repayment for each instalment, but otherwise the user is provided with a significant degree of flexibility in deciding repayment amounts and timescales. Revolving credit cards have an overall limit that is restored after each repayment. This form of credit has the advantage of not requiring a formal loan agreement to be drawn up for each purchase, and tends to be used to finance the acquisition of goods with a lower unitary value than traditionally financed through other credit instruments, thus creating a new market for retail financing. In 2011 a new kind of credit card was introduced on the market, involving payment by instalments on a non-revolving basis. The payment is divided into a pre-defined number of equal instalments, which include a fixed capital repayment and a set commission (not interest).

- INCOME-BACKED LOANS: financing is not dedicated to a specific product. The interest rate is fixed, and repayments are made through the direct deduction of a fixed amount from the beneficiary's salary or pension. The fixed deduction cannot exceed one fifth of the salary (or pension).

This report does not consider:

- personal loans that are guaranteed by a mortgage (home equity release or debt consolidation);
- companies specialising in income-backed loans and revolving credit cards, which are analysed in a separate Databank report.

Methodology

Databank’s methodology for Competitors reports begins with a careful screening to identify the main organisations that are representative of a given sector. Several one-to-one interviews are then conducted with the selected organisations. Questionnaires are sent to all the leading companies on an annual basis. The information collected is then verified by an expert in the particular sector using a system of counterchecks to guarantee that the information is entirely reliable and consistent. The process is then completed using Cerved Group’s proprietary information about Italian enterprises. All Competitors reports also include details concerning the strategies and performances of the leading companies in each sector.

LIST OF COMPANIES ANALYSED 3
1. INTRODUCTION TO METHODOLOGY 4
2. SECTOR DESCRIPTION 5
2.1. Scope 5
2.2. Segments 5
3. COMPETITIVE PERFORMANCES BY SEGMENT 6
3.1. Market share 9
CONNECTED PRODUCTS AND SERVICES 19
CONTACT 20
COPYRIGHT 21

List of Tables and Graphs:
CONSUMER CREDIT: COMPETITIVE POSITIONING OF LEADING COMPANIES, 2011
CONSUMER CREDIT: OVERALL MARKET BASED ON CREDIT ISSUED, 2009-2011
CONSUMER CREDIT: LEADING COMPANIES' SHARE OF DOMESTIC PERSONAL LOANS MARKET IN TERMS OF VALUE, 2009-2011
CONSUMER CREDIT: PERSONAL LOANS THROUGH BANK NETWORK: MARKET SHARE OF FINANCING ISSUED FOR SOME OF THE LEADING NETWORKS, 2010-2011
CONSUMER CREDIT: SECURED FINANCING: LEADING COMPANIES' SHARE OF INTERNAL MARKET IN TERMS OF VALUE, 2009-2011
CONSUMER CREDIT: CAR LOANS: LEADING COMPANIES' SHARE OF INTERNAL MARKET IN TERMS OF VALUE, 2009-2011
CONSUMER CREDIT: CAR MANUFACTURERS' LENDING DIVISIONS: LEADING COMPANIES' SHARE OF INTERNAL MARKET IN TERMS OF VALUE, 2009-2011
CONSUMER CREDIT: CAR LOANS: LEADING COMPANIES' SHARE OF INTERNAL MARKET IN TERMS OF VALUE, 2009-2011
CONSUMER CREDIT: OTHER SECURED LOANS: LEADING COMPANIES' SHARE OF INTERNAL MARKET IN TERMS OF VALUE, 2009-2011
CONSUMER CREDIT - REVOLVING CREDIT CARDS/INSTALMENT CARDS: LEADING COMPANIES' SHARE OF FINANCING ISSUED IN TERMS OF VALUE, 2009-2011
CONSUMER CREDIT - INCOME-BACKED LOANS: FINANCING ISSUED BY LEADING COMPANIES, 2009-2011

AGOS DUCATO S.P.A.
B.P.M. S.c.a.r.l.
B@NCA 24-7 S.P.A.
BANCA DELLE MARCHE S.P.A.
BANCA DI SASSARI S.P.A.
BANCA MEDIOLANUM S.P.A.
BANCA POPOLARE DELL'EMILIA ROMAGNA SC
BANCO DI DESIO E DELLA BRIANZA S.P.A.
BANCO DI SARDEGNA S.P.A.
BANCO POPOLARE SC
BANQUE PSA FINANCE S.A.
BARCLAYS BANK PLC
BCC CREDITOCONSUMO S.P.A.
BMW FINANCIAL SERVICES ITALIA S.P.A.
BNL S.P.A.
CARIPARMA S.P.A.
COMPASS S.P.A.
CONETRURIA S.P.A.
CONSEL S.P.A.
CONSUM.IT S.P.A.
CREDEM S.P.A.
CREDITIS SERVIZI FINANZIARI S.P.A.
CREDITO VALTELLINESE SC
DEUTSCHE BANK S.P.A.
FCE BANK PLC
FGA CAPITAL S.P.A.
FIDITALIA S.P.A.
FINDOMESTIC BANCA (CONS.) S.P.A.
FINITALIA S.P.A.
MERCEDES BENZ SERVIZI FINANZIARI S.P.A.
MONETA S.P.A.
NEOS FINANCE S.P.A.
PROFAMILY S.P.A.
RCI BANQUE S.A.
SANTANDER CONSUMER BANK S.P.A.
SIGLA S.R.L.
TOYOTA FINANCIAL SERVICES PLC
UNICREDIT S.P.A.
VOLKSWAGEN BANK GmbH

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