Consumer Credit in Austria 2006

SUMMARY

Overview

Introduction

Austria has a consolidated banking market. This has led to a few key players dominating the consumer credit market. The market share of these key players is covered in this report along with regulatory and competitor developments in the market. The market size and factors that have affected growth are discussed. Furthermore, a forecast shows future growth and the factors for this are highlighted.

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

Growth in the last five years has been slow. This is because of a number of factors including a culture that is adverse to debt and promotes work, discipline and saving. Furthermore, poor credit card penetration and a reliance on the German economy, which has performed particularly badly in recent years has hampered growth.

There is a strong regional branch presence in Austria. This means that Austrians often have close ties with their local branch. Therefore, when consumers require credit they are likely to go to their local branch. Furthermore, a limited infrastructure for credit card and retail finance in Austria further enhances the personal loan market.

Competition in the Austrian banking sector has been strong, resulting in thin margins and low fees in the service areas. The branch density in Austria is the second highest in Europe. However, competition varies according to different regions. Vienna is one of the most competitive, while the more rural areas are less exposed to competition.

Reasons to Purchase

• Learn how the Austrian 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 Austrian consumer credit market over the next five years and its future prospects

TABLE OF CONTENTS

• OVERVIEW
  • Market Size
  • Future Growth Indicators
  • Key market players
• CHAPTER 1 INTRODUCTION
  • What is this report about?
  • Scope of the report
  • Structure of 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
    • Joint stock banks and private banks
    • Savings Banks (Sparkassen) Group
    • Regional mortgage banks
    • Raiffeisen Group
    • Volksbanken Group
    • Bausparkassen
    • Special purpose banks and Finance houses
  • Market size
    • Total consumer credit
      • Gross advances
      • Balances outstanding
      • Consumer credit as a proportion of total retail lending
      • Consumer credit balances outstanding per capita
      • Consumer credit balances outstanding as a proportion of GDP
  • Consumer credit product statistics
    • Personal loans are the most popular form of consumer credit
    • While POS motor finance is popular, POS retail finance is almost nonexistent
    • Credit card usage is very low
  • Regulatory environment
    • Industry regulators in Austria
      • Oesterreichische Nationalbank
  • Industry associations
    • Sparkassenverband
    • Oesterreichische Genossenschaftsverband
    • Raiffeisenverband
    • Verband der österreichischen Landes-Hypothekenbanken
    • Verband österreichischer Banken und Bankiers
  • Credit bureaux
    • Experian
  • Regulatory issues in the market
    • European consumer credit directive
• CHAPTER 3 COMPETITOR AND PRODUCT OVERVIEW
  • Consumer credit market shares by competitor
    • The Raiffeisen is the leading consumer credit provider in Austria
  • Profiles of the top five consumer credit providers
    • Raiffeisen
    • Bank Austria Creditanstalt (BA-CA)
    • Sparkassen
    • Volksbank
    • GE Consumer Finance
      • GE Money Bank dominates the POS market
  • Top five credit card lenders
    • Market share of credti card balances outstanding
  • Competitor developments
    • Austria has a competitive banking market
      • Entry into the Austrian retail banking market is difficult
      • The Volksbank and Raiffeisen groups are direct competitiors
      • The merger of BAWAG and PSK was the biggest of 2005
  • Product analysis
    • Typical product design
    • Product innovations in the market
      • Bausparkassen loans are no longer just for housing
  • Distribution
    • Austria's population is well served by bank branches
      • However, branch banking is falling off as Internet banking booms
• CHAPTER 4 FORECASTING THE CONSUMER CREDIT MARKET IN AUSTRIA
  • Forecasting gross advances
    • Consumer credit gross advances in the Austrian market will reach €17.3 billion in 2010
    • A number of factors will determine this growth
  • Future prospects
    • Strengths
    • Weakness
    • Opportunities
    • Threats
• CHAPTER 5 APPENDIX
  • Supplementary data
  • Definitions
  • Research methodology
  • Relevant readings
  • Datamonitor's custom research capabilities
  • Retail Banking Team contact details
  • How to contact experts in your industry
  • List of Tables
    • Table 1: Consumer credit gross advances and balances outstanding in Austria, 2001-2005e
    • Table 2: Ranking of selected European countries by GDP, 2004
    • Table 3: GDP per capita for selected European countries, 2005
    • Table 4: The service industry is the main contributor to Austria's GDP, 2005
    • Table 5: GINI Coefficient for selected European countries
    • Table 6: Segmentation of liquid assets in Austria, 2004
    • Table 7: Population distribution according to age group in Austria, 2005
    • Table 8: Consumer credit balances outstanding per capita of selected European countries, 2005
    • Table 9: Consumer credit balances outstanding compared to GDP of selected European countries, 2005
    • Table 10: Forecast of consumer credit gross advances in the Austrian market, 2004-2010f
    • Table 11: Rate of growth of GDP in Austria, 2001-2005
    • Table 12: Labor statistics in Austria, 2001-2005
    • Table 13: Consumer credit gross advances in Austria, 2001-2005
    • Table 14: Consumer credit balances outstanding in Austria, 2001-2005
    • Table 15: Consumer credit as a proportion of total retail lending in Austria, 2001-2005e
    • Table 16: Market shares of consumer credit balances outstanding by product in Austria, 2004
    • Table 17: Market share of total consumer credit balances outstanding for the top five Austrian consumer credit providers, 2004
    • Table 18: Market shares of credit card balances outstanding of the top five Austrian credit card providers, 2004
  • List of Figures
    • Figure 1: Consumer credit gross advances in the Austrian market will grow at a CAGR of 9.6 per cent to reach €17.3 billion in 2010, 2004-2010f
    • Figure 2: The Raiffeisen group has the biggest market share of consumer credit balances outstanding providers in Austria, 2004
    • Figure 3: Key statistics for the Austrian consumer credit market, 2005
    • Figure 4: Impacted by a weak German economy, Austrian economic growth has been solid but subdued in recent years, 2001-2005
    • Figure 5: Austria has maintained a low inflation rate over the past five years, 2000-2005
    • Figure 6: Unemployment has been rising in recent years, 2001-2005
    • Figure 7: The seven pillars of Austrian consumer lending, 2004
    • Figure 8: New lending of consumer credit in Austria is estimated to have reached €6.5 billion, 2004e-2005e
    • Figure 9: Between 2001 and 2003 consumer credit balances outstanding fell in Austria, before a sharp rise in 2004, 2001-2005e
    • Figure 10: Consumer credit as a proportion of total retail lending in Austria fell between 2001 and 2004, 2001-2005e
    • Figure 11: In terms of balances outstanding, personal loans are the leading consumer credit product in Austria, 2004
    • Figure 12: The Raiffeisen group has the largest market share of consumer credit balances outstanding providers in Austria, 2004
    • Figure 13: BA-CA is the leading credit card provider in Austria, 2004
    • Figure 14: Consumer credit gross advances in the Austrian market will grow at a CAGR of 5.6 per cent to reach €8.9 billion in 2010, 2004-2010f
    • Figure 22 Datamonitor's core consulting capabilities