In cheque: Slowing aggregate household debt and increasing disposable income will mitigate the threat of insolvencies

The industry is largely dependent on the state of the overall economy, which determines how able and willing consumers and businesses are to repay loans. After a brief dip during the recession, a recovery in corporate profit enabled the industry to bounce back slowly. A decreased overnight rate is expected to limit concern for the consumer credit market in the short term, and increase industry revenue over the next five years...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
1.4%
Forecast Growth 18-23
Profit
Employment
4,062
Businesses
416

Industry Threats & Opportunities

  • As interest rates have remained low over the past five years, Canadians have continued to demand industry products
  • The housing market has boomed in recent years, buoyed especially by condominiums in Toronto and Vancouver
  • The Bank of Canada is expected to continue a series of interest rate hikes
  • Industry Report - Industry Locations Chapter

    The location of industry operators is largely dependent on population trends, with the highest percentage of establishments in 2018 projected to be located in Ontario and Quebec at 39.4% and 24.4%, respectively. With a population of nearly 37.0 million dispersed over a large geographic area, the majority of the population tends to live in the southern parts of the country, which is also the home to 17 of Canada's largest cities. For example, over 61.3% of the Canadian population lives in the provinces of Quebec and Ontario. By comparison, Alberta and British Columbia account for an estimated 15.8% and 12.0% of industry establishments, while the Atlantic Provinces (Newfoundland, Nova Scotia, Prince Edward Island and New Brunswick) account for 3.7% of industry establishments in total...purchase to read more.

    Additional Insights for the Loan Administration, Cheque Cashing & Other Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Loan Administration, Cheque Cashing & Other Services Industry are

  • Experienced work force
  • Having links with suppliers
  • Ability to effectively manage risk
  • IBISWorld analysts also discuss how external factors such as Aggregate household debt and Overnight rate in the Loan Administration, Cheque Cashing & Other Services industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Loan Administration, Cheque Cashing & Other Services Industry?

    Operators in this industry service loans, most notably mortgages. It does not originate loans, which includes legally arranging and issuing the loan; servicing loans includes performing all of the administrative aspects of the loan. The industry also performs money transmission services, which includes selling and cashing traveller’s cheques, money orders and cashier’s cheques, while also renting safe deposit boxes.

    Industry Products
  • Secured consumer loans
  • Unsecured consumer loans
  • Cash handling and management services for businesses
  • Industry Activities
  • Loan Servicing (primarily mortgages)
  • Selling money orders and traveller's checks
  • Check-cashing servicing
  • Money transmission servicing
  • Safe deposit box renting
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Aggregate household debt
  • Overnight rate
  • Housing starts
  • Per capita disposable income
  • New vehicle sales

  • Current Performance
  • Lending incentives
  • Business lending trumps personal lending
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Rising interest
  • Fees and competition
  • Bottom line
  • Table: Loan Administration, Cheque Cashing & Other Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Loan Administration, Cheque Cashing & Other Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Commercial Banking in Canada
  • Credit Card Issuing in Canada
  • Loan Brokers in Canada

  • Key Selling Industries
  • Consumers in Canada
  • Finance and Insurance In Canada
  • Loan Brokers in Canada
  • Real Estate Sales & Brokerage in Canada

  • Products & Services
  • Cash handling and management services for businesses
  • Unsecured consumer loans
  • Secured consumer loans
  • Other
  • Chart: Loan Administration, Cheque Cashing & Other Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers
  • Businesses
  • Other
  • Chart: Major Market Segmentation for the Loan Administration, Cheque Cashing & Other Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesPurchases are expected to account for 46.9% of industry revenue in 2018, down slightly from 47.1% in 2013, constituting the largest expense for industry operators. Since revenue is primarily sourced from loan services primarily composed of residential mortgage loans and unsecured consumer loans, financial hedging is vital to operating in the industry. As a result, a significant amount of trading occurs between financial firms that seek to minimize potential losses. Operators trade tranches of their debt securities while purchasing other tranches to diversify their portfolios.WagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Loan Administration, Cheque Cashing & Other Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Loan Administration, Cheque Cashing & Other Services Industry

  • Industry Globalization
    National Money Mart Company, Cash Money Inc.,
  • Table: National Money Mart Company - financial performance
  • Table: Cash Money Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Loan Administration, Cheque Cashing & Other Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Loan Administration, Cheque Cashing & Other Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Overnight rate (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Collateralized Mortgage Obligation (Cmo)
  • A pool of mortgages that pay investors different cash flows based upon the rules of the collateralized mortgage.
  • Loan Servicing
  • The administration aspects of the loan, which consist of sending and collecting monthly payments, maintaining loan records and paying insurance and taxes on the loan.
  • Mortgage Backed Security (Mbs)
  • A debt instrument that represents a claim on mortgage cash flows, usually from residential property.
  • Originated Mortgage Servicing Rights
  • The aggregate value of a servicing portfolio acquired through the company's own production.
  • Provision For Credit Losses
  • An amount set aside as an allowance for bad debts, which are debts where the customer defaults or where the terms of the loan need to be renegotiated.
  • Purchased Mortgage Servicing Rights
  • The aggregate value of a servicing portfolio obtained from a source outside the purchasing company.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Loan Administration, Cheque Cashing & Other Services market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Loan Administration, Cheque Cashing & Other Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Loan Administration, Cheque Cashing & Other Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Loan Administration, Cheque Cashing & Other Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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