The Australian consumer credit market is forecasted to trend upwards at a modest pace over the next few years. The biggest providers are looking to increase their lending, mainly to prime borrowers with good risk profiles. Consumer confidence has recently started to improve, and this is likely to translate into increased demand for credit.
Gain an in-depth understanding of the factors that will drive the consumer credit market over the next few years.
Learn where the best opportunities for future growth in the unsecured market lie.
Access Verdict Financial's five-year lending forecasts and discover how each sector of the consumer credit market will perform relative to one another.
Which lines of credit will enjoy the best prospects for growth in the coming years?
What are the prospects for sectors such as debt consolidation and auto loans?
What developments will influence market trends and product innovation in consumer credit over the next few years?
2013 saw a recovery in the consumer credit market. Total gross lending rose from A$87.5bn in 2012 to A$96.3bn 1bn in 2013, a 10.19.9% increase. The dark days of shrinking gross advances which have characterized much of the market since the global financial crisis have finally been relegated to the past.
Across the different loan segments and according to Verdict Financials forecast, the decline since 2007 will have tapered off by the end of 2012. The market grew a fair bit in 2013 and is expected to continue to result in stable and steady growth for the next few years to 2018.
From Verdict Financial's forecast, debt consolidation and refinancing are the two largest categories of consumer credit, and by 2018 are forecast to grow to A$56.4bn and A$41.5bn respectively after credit cards. On the other hand, line of credit and household goods will record the largest growth rate fueled by a robust Australian property market.