Consumer Credit in the Benelux Region 2006

This short report looks at the consumer credit market in Belgium, the Netherlands and Luxembourg. This report provides key statistics on market size, competitor market shares and lenders' strategies. It also presents recent developments relating to regulation, competitor activities and product innovation. The report concludes with forecasts and a SWOT analysis.

• 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 Dutch population remains highly credit averse The Dutch population still views debt as a negative situation to be in, unless it is for the purpose of purchasing a property.

Belgian consumers have traditionally been conservative in regards to spending - thinking of debt with a negative connotation. Instead, they are more partial towards saving and have the highest rate of savings in Western Europe. However, attitudes are changing. In particular, young people are more open to spending and less inclined to save.

The level of wealth in Luxembourg is far higher than in Belgium or the Netherlands. Therefore, because they have the earning power to pay off their debts with ease, consumers are far less reticent than consumers in Belgium or the Netherlands.

• Learn how the Benelux 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 Benelux 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 wealth

Unemployment

Demographics

Population and demographic split

Structure of the Benelux retail banking market

Structure of the Belgian retail banking market

Structure of the Dutch retail banking market

Structure of Luxembourg's retail banking market

Market size

Total consumer credit

Gross advances

Balances outstanding

Consumer credit in comparison to total retail lending

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 in Belgium

National Bank of Belgium - NBB

Banking, Finance and Assurance Commission - CBFA

Industry associations in Belgium

Belgian Bankers' Association (ABB-BVB)

Test-Achats

Union Professionnelle du Crédit - UPC BVK

Industry regulators in Netherlands

De Nederlandsche Bank

Netherlands Authority for the Financial Markets (AFM)

Industry associations in the Netherlands

Nederlandse Vereniging van Banken (NVB)

Consumentenbond

Industry regulators in Luxembourg

The Banque Centrale du Luxembourg (BCL)

Commission de Surveillance du Secteur Financier (CSSF)

Industry associations in Luxembourg

Association des Banques et Banquiers Luxembourg (ABBL)

Union Luxembourgeoise des Consommateurs (ULC)

Credit bureaux

Both private and public credit bureaux operate in Belgium

There are two main credit scoring bureaux in the Netherlands

Regulatory issues in the market

European consumer credit directive

Belgian consumer protection laws are on the increase

Consumer credit is also tightly controlled in the Netherlands

CHAPTER 3 COMPETITOR AND PRODUCT OVERVIEW

Consumer credit market shares by institution

Banks are the main players in the consumer credit market in the Benelux region

Finance houses are minor players in the consumer credit market in the Benelux region

Consumer credit market shares by competitor

ABN AMRO is the leading consumer credit provider in the Benelux region

Profiles of the top five consumer credit providers

ABN AMRO

Fortis

ING Bank

Dexia

KBC

Top five credit card lenders

Credit card market share by balances outstanding in Belgium

Credit card market share by balances outstanding in the Netherlands

Competitor developments

The consolidation process in Belgium

The consolidation process in the Netherlands

Recent changes in Luxembourg

Product analysis

Typical product design of personal loans in the Benelux region

Consumer credit product innovations in the Benelux region

The structure of the Benelux financial system means that its consumer credit market is stable but suffers from a lack of innovation

Distribution

The Internet has made a big impact on the Dutch retail banking market

Rabobank launches Internet banking in Belgium

CHAPTER 4 FORECASTING THE CONSUMER CREDIT MARKET IN THE BENELUX REGION

Forecasting gross advances

Gross advances in the Benelux consumer credit market will reach €27.4 billion in 2010

A number of factors will determine this growth

Future prospects

Strengths

Weakness

Opportunities

Threats

APPENDIX

Supplementary data

Definitions

Forecasting methodology

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 the Benelux region, 2001-2005

Table 2: GDP per capita for selected European countries, 2005

Table 3: Sectoral composition of the economies of the Benelux nations, 2005

Table 4: GINI Coefficient for selected European countries

Table 5: Segmentation of liquid assets in the Benelux countries, 2004

Table 6: Total population and demographic splits for the Benelux region, 2005

Table 7: Consumer credit balances outstanding compared to GDP of selected European countries, 2005

Table 8: Consumer credit balances outstanding per capita of selected European countries, 2005

Table 9: List of top ten and other selected rates for personal loans in the Netherlands, December 2005

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

Table 11: Real GDP growth in the Benelux region, 2001-2005

Table 12: Unemployment rate in the Benelux region, 2001-2005

Table 13: Consumer credit gross advances in the Benelux region, 2001-2005e

Table 14: Consumer credit balances outstanding in the Benelux region, 2001-2005e

Table 15: Consumer credit as a proportion of total retail lending in the Benelux region, 2001-2005e

Table 16: Market share of consumer credit balances outstanding by product in the Benelux region, 2004

Table 17: Market share of consumer credit balances outstanding by product in Belgium, 2004

Table 18: Market share of consumer credit balances outstanding by product in the Netherlands, 2004

Table 19: Market share of consumer credit balances outstanding by product in Luxembourg, 2004

Table 20: Consumer credit balances outstanding by type of lender in the Benelux region, 2004

Table 21: Market share of total consumer credit balances outstanding for the top five Benelux consumer credit providers, 2004

Table 22: Market shares of credit card balances outstanding of the top five Belgian and Dutch credit card providers, 2004

List of Figures

Figure 1: Consumer credit gross advances in the Benelux market will grow at a CAGR of 4.7 per cent to reach €27.4 billion in 2010, 2001-2010f

Figure 2: The leading consumer credit provider in the Benelux region is ABN AMRO, 2004

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

Figure 4: Both the Dutch and Belgian economies have stuttered in recent years, 2001-2005

Figure 5: Following its peak in 2001, inflation in the Netherlands is now below the levels witness in Belgium and Luxembourg, 2000-05

Figure 6: Belgium has the highest unemployment rate in the Benelux region, 2001-2005

Figure 7: While new lending in the Dutch consumer credit market contracted, new lending in Belgium and Luxembourg grew steadily, 2001-2005e

Figure 8: Consumer credit balances outstanding have increased in all three Benelux markets, 2001-2005e

Figure 9: Consumer credit balances outstanding as a proportion of total retail lending has been falling year-on-year, 2001-2005e

Figure 10: Personal loans account for the largest proportion of new lending in the Benelux consumer credit market, 2004

Figure 11: Personal loans accounted for over half of outstanding balances in all three consumer credit markets in the region, 2004

Figure 12: Regulatory overview of the Belgian Banking market, 2005

Figure 13: Regulatory overview of the Netherlands, 2005

Figure 14: Regulatory overview of Luxembourg, 2005

Figure 15: Banks account for the vast majority of the consumer credit market in the Benelux region, 2004

Figure 16: Banks are the leading consumer credit provider in the Netherlands, 2004

Figure 17: The leading consumer credit provider in the Benelux region was ABN AMRO, 2004

Figure 18: Fortis is the leading credit card lender in Belgium, 2004

Figure 19: ING is the leading credit card lender in the Netherlands, 2004

Figure 20: Consumer credit gross advances in the Benelux market will grow at a CAGR of 4.7 per cent to reach €27.4 billion in 2010, 2001-2010f

Figure 21: Datamonitor's core consulting capabilities