In cheque: Increased external competition will put downward pressure on industry services

Over the five years to 2019, consumption-based growth, a significant portion of which is debt-financed, drove Canada's economy. Canadian consumers' appetite for debt has boosted the Loan Administration, Cheque Cashing and Other Services industry in Canada by sustaining demand for consumer financing, mortgages and cash services for businesses. GDP growth in Canada has largely been driven by trends in consumption. As interest rates have remained low over the past five years, Canadians have continued to demand industry products...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 14-19
2.1%
Forecast Growth 19-24
Profit
Employment
4,156
Businesses
314

Industry Threats & Opportunities

  • Mounting household debt runs the risk of insolvency and industry contraction
  • Declining profit margins have severely affected revenue over the past five years
  • The fee rate for servicing loans is unlikely to be affected by internal competition
  • Industry Report - Industry Key Buyers Chapter

    The Loan Administration, Cheque Cashing and Other Services industry in Canada has a low level of market share concentration. The top four companies in this industry are expected to account for 52.9% of revenue. Over the five years to 2019, market share concentration has remained relatively steady because while larger companies have expanded nationally via franchising and acquisitions. Nonetheless, a large proportion of industry operators are privately held. Concentration in this industry is expected to increase over the five years to 2024 due to increased competition from external competitors and increased regulation, as less profitable industry operators exit the industry...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..

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    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
  • Loan Servicing
  • Cash handling and management services
  • Industry Activities
  • Loan Servicing (primarily mortgages)
  • Selling money orders and traveller's cheques
  • Cheque 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
  • Increased regulation
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • 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
  • Loan Servicing
  • Cash handling and management services
  • 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
    WagesPurchasesProfitOther
  • Chart: Cost Structure Benchmarking – Sector vs Loan Administration, Cheque Cashing & Other Services

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

  • Industry Globalization
    National Money Mart Company Inc., Cash Money Inc., Cash 4 You Corp.,
  • Table: National Money Mart Company Inc. - financial performance
  • Table: Cash Money Inc. - financial performance
  • Table: Cash 4 You Corp. - 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Aggregate household debt (2010-2024)

  • 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 is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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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