Consumer Credit in Italy 2006

Short report analyzing the consumer credit market in Italy. Covers market size, trend analysis, market forecasts, competitor market shares and key regulatory and competitor developments in the market.

• 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

The Italian consumer credit market has seen strong growth over the last five years, with both gross advances and balances outstanding rising at fast rates. However, the consumer credit market has not been growing as quickly as the Italian mortgage market.

The key factors contributing to growth in the Italian market have been a low base rate and a low level of indebtedness. However, an inefficient legal system and a resistance to borrowing held the market back from growing even faster.

The Italian market is small and relatively under-exploited compared to the rest of Western Europe. However, recent years have seen tremendous growth in particular with credit cards and point of sale finance with many banks looking to take advantage of this unexploited market.

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

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

Distribution of liquid assets in Italy

Demographics

Population and demographic split

Unemployment

Market structure

Limited liability banks

Co-operative banks

Savings Banks

Market size

Total consumer credit

Gross advances

Balances outstanding

Consumer credit as a proportion of total retail lending

Consumer credit as a proportion of GDP

Consumer credit per capita

Italy's consumer credit market remains underdeveloped, mainly as a result of formerly high interest rates and high saving rates

Consumer credit product statistics

Consumer credit gross advances by product

Consumer credit balances outstanding by product

Retail finance is on the increase for the second time of trying

The Italian motor finance market has been growing strongly in recent years

Credit cards are becoming more popular in Italy

Regulatory environment

Industry regulators in Italy

Banca d'Italia

Industry associations

Associazione Bancaria Italiana - ABI

ACRI

Banche Credito Cooperativo - BCC

Associazione Italiana del Credito al Consumo e Immobiliare - Assofin

Credit bureaux

EURISC - CRIF Credit Protection Bureau

Consorzio per la tutela del credito - CTC

Regulatory issues in the market

European consumer credit directive

Investment by foreign banks has been hindered in the past

CHAPTER 3 COMPETITOR AND PRODUCT OVERVIEW

Consumer credit market shares by institute

Consumer credit market shares by competitor

Profiles of the top five consumer credit providers

Findomestic (Cetelem)

Banca Intesa

Fiditalia

Banca Unicredito

Banca Monte Dei Paschi Group

Top five credit card lenders

Market share by balances outstanding

Competitor developments

The Italian banking market has become more consolidated

Attititudes towards consumer credit have been changing

Much of the new bank interest has been due to changes in regulation

Competition is increasing in Italy

Capitalia looks to expand its business to cover the whole of Italy

Product analysis

Typical product design of personal loans

Product innovations in the market

Distribution

ING have used the Internet to enter the Italian market

CHAPTER 4 FORECASTING THE CONSUMER CREDIT MARKET IN ITALY

Forecasting gross advances

Gross advances in the Italian consumer credit market will reach €68.3 billion in 2010

A number of factors will determine this growth

Future prospects

Strengths

Weakness

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 Italy, 2001-2005e

Table 2: Ranking of selected European countries by GDP, 2005

Table 3: GDP per capita for selected European countries, 2005

Table 4: Composition of Italy's GDP by sector, 2005

Table 5: GINI Coefficient for selected European countries, 2005

Table 6: Segmentation of liquid assets in Italy, 2004

Table 7: Population distribution according to age group in Italy, 2005

Table 8: Consumer credit balances outstanding compared to GDP of selected European countries, 2005

Table 9: Consumer credit balances outstanding per capita of selected European countries, 2005

Table 10: Forecast of consumer credit gross advances in the Italian consumer credit market, 2004-2010f

Table 11: Rate of growth of GDP in Italy, 2000-2005

Table 12: Labor statistics in Italy, 2000-2005

Table 13: Consumer credit gross advances in Italy, 2001-2005

Table 14: Consumer credit balances outstanding in Italy, 2001-2005

Table 15: Consumer credit as a proportion of total Retail Lending in Italy, 2001-2005

Table 16: Market shares of consumer credit gross advances by product in Italy, 2004

Table 17: Market shares of consumer credit balances outstanding by product in Italy, 2004

Table 18: Market share of total consumer credit balances outstanding for the top five Italian consumer credit providers, 2004

Table 19: Market share of credit card balances outstanding of the top five Italian credit card providers, 2004

List of Figures

Figure 1: Gross advances in the Italian consumer credit market will grow at a CAGR of 4.2 per cent to reach €68.3 billion in 2010, 2001-2010f

Figure 2: Findomestic is the leading consumer credit provider in Italy, 2004

Figure 3: Key statistics for the Italian consumer credit market, 2005

Figure 4: The Italian economy has performed poorly in recent years, 2001-2005

Figure 5: The Italian inflation rate has fluctuated around the two per cent market in recent years, 2000-2005

Figure 6: Unemployment in Italy has been falling in recent years, 2000-2005

Figure 7: In terms of new lending, the Italian consumer credit market has grown rapidly, 2001-2005

Figure 8: Consumer credit balances outstanding have grown nearly as fast as new lending in the Italian market, 2001-2005

Figure 9: Consumer credit now accounts for a marginally smaller share of the retail lending market compared to five years ago, 2001-2005

Figure 10: Motor finance accounts for the largest share of consumer credit gross advances in Italy, 2004

Figure 11: In terms of balances outstanding, motor finance is the leading consumer credit product in Italy, 2004

Figure 12: Regulatory overview of Italy, 2004

Figure 13: Banks have the largest share of consumer credit balances outstanding in Italy, 2004

Figure 14: Findomestic is the leading consumer credit provider in Italy, 2004

Figure 15: Unicredito is the leading credit card lender in Italy, 2004

Figure 16: Main mergers in Italy, 1998-2005

Figure 17: Gross advances in the Italian consumer credit market will grow at a CAGR of 4.2 per cent to reach €68.3 billion in 2010, 2001-2010f

Figure 18: Datamonitor's core consulting capabilities