Consumer Credit in France 2006

SUMMARY

Abstract

Overview

Introduction

Consumer Credit in France 2006 is an invaluable guide to a market dominated by some of Europe's largest finance houses. This short report analyses the consumer credit market in France. Covering market size, trend analysis, market forecasts, competitor market shares and key regulatory and competitor developments in the market.

Scope

• Covers the consumer credit market (not including any loans secured on property)
• Provides market sizing data in terms of gross advances and balances outstanding
• Provides competitor market share for the top five players in terms of balances outstanding; a short profile of the top players is also provided
• Provides competitor market share for the top five credit card lenders in terms of balances outstanding

Report Highlights

French consumer credit market has only seen steady growth in recent years. This is because of sluggish French economic performance, high unemployment, a resistance to borrowing, in particular through revolving credit. However, this resistance appears to be waning.

The credit card market is underdeveloped in France. However, revolving credit cards have grown in popularity over recent years. An increase in the demand for consumer credit, coupled with the long-term familiarity that French consumers have with pay later card products have combined to grow this market.

Aside from the cards market, there is a lack of innovation in the French consumer credit market. With few new entrants to the market and the market being controlled by a few big players that compete on price and distribution networks, innovation is something that is overlooked.

Reasons to Purchase

• Learn how the French consumer credit market has developed over the last five years
• Understand the recent developments in the market in terms of regulation, competition and product innovations
• Find out Datamonitor's opinion on the future performance of the French consumer credit market over the next five years and its future prospects

TABLE OF CONTENTS

Table of Contents

• OVERVIEW
  • Market Size
  • Future growth indicators
  • Key market players
• CHAPTER 1 INTRODUCTION
  • What is this report about?
  • Scope of the report
    • This report focuses on non-mortgage consumer lending
    • The data provided in this report is consistent with that provided in Datamonitor's suite of Western European consumer credit reports
  • Structure of the report
• CHAPTER 2 MARKET CONTEXT
  • Country overview
    • Economy
      • GDP
      • Inflation
      • Distribution of income
      • Segmentation of liquid assets
      • Unemployment
  • Demographics
    • Population and demographic split
  • Market structure
    • Commercial banks
    • Mutual and co-operative banks
    • Municipal credit banks (Caisses de crédit municipal)
      • There are only 20 Municipal Credit Banks in France
  • The French banking structure is more complex than it seems
    • The hybrid structure means that the differentiation between commercial and mutual banks is blurring
      • Finance houses are important players in the retail financial market
  • Market size
    • Total consumer credit
      • Gross advances
      • Balances outstanding
      • Consumer credit as a proportion of total retail lending in France
      • Consumer credit balances outstanding as a proportion of GDP
      • Consumer credit balances outstanding per capita
  • Consumer credit product statistics
    • Consumer credit gross advances by product
    • Consumer credit balances outstanding by product
  • Regulatory environment
    • Industry regulators
      • Banque de France
      • Commission Bancaire - CB
      • The Credit Institutions and Investments Firms Committee (CECEI)
      • The Banking and Financial Regulatory Committee (CRBF)
  • Industry associations
    • Groupement des Cartes Bancaires (CB)
    • Association Française des etablissements de Crédit et des entreprises d'investissements (AFECEI)
    • Association Française des Sociétés Financières (ASF)
    • Fédération Bancaire Française (FBF)
    • Conseil National du Crédit et du Titre (advisory bodies)
    • Comité consultatif
    • L'Union Fédérale de Consommateurs
  • Credit bureaux
  • Regulatory issues in the market
    • The 1984 Banking Act subjected all banks to the same rules
    • There is no sub-prime market in France
    • A number of legislative changes have been made in recent years that affect the consumer credit market
    • The European consumer credit directive will only have a small impact on the French market
• CHAPTER 3 COMPETITOR AND PRODUCT OVERVIEW
  • Consumer credit market shares by institution
  • Consumer credit market shares by competitor
  • Profiles of the top five consumer credit providers
    • Cetelem
      • The private label card market is Cetelem's core market in France
      • Cetelem is also a major player in the point of sale motor finance market
      • Unsecured personal loans are also important
  • Société Générale
  • Crédit Agricole
  • Banque Populaire
  • Caisse d'Epargne
    • Top five credit card lenders
  • Market share by balances outstanding
    • Competitor developments
  • Mergers and acquisition activity in the French banking market
    • Crédit Agricole take over Crédit Lyonnais
    • Mutual and co-operative banks have consolidated themselves in recent years
    • However, it is thought that the French banking market is fully consolidated
  • Entries and exits
    • La Banque Postale was created on 1 January 2006
    • Egg withdraw from the French market shortly after entry
  • Product analysis
    • Typical product characteristics
    • Product innovation
  • Distribution
    • One quarter of consumers bank online
    • Meanwhile, other banking channels have remained popular
• CHAPTER 4 FORECASTING THE CONSUMER CREDIT MARKET IN FRANCE
  • Forecasting gross advances
    • Gross advances in the French consumer credit market will reach €206.6 billion in 2010
    • A number of factors will determine this growth
  • Future prospects
    • Strengths
    • Weaknesses
    • Opportunities
    • Threats
• CHAPTER 5 APPENDIX
  • Supplementary data
  • Definitions
  • Forecasting methodology
  • Research methodology
  • Relevant readings
  • Datamonitor's custom research capabilities
  • SPP writing team
  • How to contact experts in your industry
  • List of Tables
    • Table 1: Consumer credit gross advances and balances outstanding in France, 2001-2005e
    • Table 2: GDP per capita for selected European countries, 2005
    • Table 3: GINI Coefficient for selected European countries
    • Table 4: Segmentation of liquid assets, 2004
    • Table 5: Examples of finance houses, 2005
    • Table 6: Consumer credit balances outstanding compared to GDP of selected European countries, 2005
    • Table 7: Consumer credit balances outstanding per capita of selected European countries, 2005
    • Table 8: APR of Cofidis personal loans, May 2006
    • Table 9: Forecast of consumer credit gross advances in the French market, 2005e-2010f
    • Table 10: Rate of growth of GDP in France, 2001-2005
    • Table 11: GDP at current rates for major European countries , 2001-2005
    • Table 12: Inflation in France, 2001-2005
    • Table 13: Population by age band for Western European countries, 2005
    • Table 14: Consumer credit gross advances in France, 2001-2005e
    • Table 15: Consumer credit balances outstanding in France, 2001-2005e
    • Table 16: Consumer credit as a proportion of total retail lending in France, 2001-2005e
    • Table 17: Market shares by consumer credit gross advances of products in France, 2004
    • Table 18: Market shares by consumer credit balances outstanding of products in France, 2004
    • Table 19: Market share of total consumer credit balances outstanding for the top five French consumer credit providers, 2004
    • Table 20: Market shares of credit card balances outstanding of the top five French credit card providers, 2004
  • List of Figures
    • Figure 1: Gross advances in the French consumer credit market will grow at a CAGR of 7.0 per cent to reach €206.6 billion in 2010, 2001-2010f
    • Figure 2: Cetelem are the leading consumer credit provider in France, 2004
    • Figure 3: Key statistics for the French consumer credit market, 2005
    • Figure 4: The French economy is the third largest in Europe, 2005
    • Figure 5: France has enjoyed a period of positive economic growth, 2001 to 2005
    • Figure 6: The French economy is dominated by the services sector, while the agriculture sector accounts for just 2.2 per cent of economic output, 2005
    • Figure 7: French inflation has been kept at or below two per cent per annum in recent years, 2000-2006
    • Figure 8: France has a relatively high proportion of its population under 15 years of age in comparison to its peers, 2005
    • Figure 9: The three pillars of the French retail banking system
    • Figure 10: Consumer credit gross advances in France have been rising steadily, 2001-2005e
    • Figure 11: Consumer credit balances outstanding have grown slowly in France, 2001-2005e
    • Figure 12: Growth in the mortgage market has reduced its share of the market, 2001-2005
    • Figure 13: Retail finance is the major consumer credit product in terms of gross advances in France, 2004
    • Figure 14: In terms of balances outstanding, personal loans are the major consumer credit product in France, 2004
    • Figure 15: Regulatory overview of France, 2005
    • Figure 16: Consumer credit in France is split almost evenly between banks and other providers, 2004
    • Figure 17: Cetelem is the leading consumer credit provider in France, 2004
    • Figure 18: Caisse d'Epargne is the leading credit card lender in France, 2004
    • Figure 19: Main merger and acquisition activities in the French market, 1996-2005
    • Figure 20: Gross advances in the French consumer credit market will grow at a CAGR of 7.0 per cent to reach €206.6 billion in 2010, 2001-2010f
    • Figure 21: Datamonitor's core consulting capabilities