Consumer Credit in France 2006

Consumer Credit in France 2006 is an invaluable guide to a market dominated by some of Europe's largest finance houses. This short report analyses the consumer credit market in France. Covering 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

French consumer credit market has only seen steady growth in recent years. This is because of sluggish French economic performance, high unemployment, a resistance to borrowing, in particular through revolving credit. However, this resistance appears to be waning.

The credit card market is underdeveloped in France. However, revolving credit cards have grown in popularity over recent years. An increase in the demand for consumer credit, coupled with the long-term familiarity that French consumers have with pay later card products have combined to grow this market.

Aside from the cards market, there is a lack of innovation in the French consumer credit market. With few new entrants to the market and the market being controlled by a few big players that compete on price and distribution networks, innovation is something that is overlooked.

• Learn how the French 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 French 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

This report focuses on non-mortgage consumer lending

The data provided in this report is consistent with that provided in Datamonitor's suite of Western European consumer credit reports

Structure of the 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

Commercial banks

Mutual and co-operative banks

Municipal credit banks (Caisses de crédit municipal)

There are only 20 Municipal Credit Banks in France

The French banking structure is more complex than it seems

The hybrid structure means that the differentiation between commercial and mutual banks is blurring

Finance houses are important players in the retail financial market

Market size

Total consumer credit

Gross advances

Balances outstanding

Consumer credit as a proportion of total retail lending in France

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

Banque de France

Commission Bancaire - CB

The Credit Institutions and Investments Firms Committee (CECEI)

The Banking and Financial Regulatory Committee (CRBF)

Industry associations

Groupement des Cartes Bancaires (CB)

Association Française des etablissements de Crédit et des entreprises d'investissements (AFECEI)

Association Française des Sociétés Financières (ASF)

Fédération Bancaire Française (FBF)

Conseil National du Crédit et du Titre (advisory bodies)

Comité consultatif

L'Union Fédérale de Consommateurs

Credit bureaux

Regulatory issues in the market

The 1984 Banking Act subjected all banks to the same rules

There is no sub-prime market in France

A number of legislative changes have been made in recent years that affect the consumer credit market

The European consumer credit directive will only have a small impact on the French market

CHAPTER 3 COMPETITOR AND PRODUCT OVERVIEW

Consumer credit market shares by institution

Consumer credit market shares by competitor

Profiles of the top five consumer credit providers

Cetelem

The private label card market is Cetelem's core market in France

Cetelem is also a major player in the point of sale motor finance market

Unsecured personal loans are also important

Société Générale

Crédit Agricole

Banque Populaire

Caisse d'Epargne

Top five credit card lenders

Market share by balances outstanding

Competitor developments

Mergers and acquisition activity in the French banking market

Crédit Agricole take over Crédit Lyonnais

Mutual and co-operative banks have consolidated themselves in recent years

However, it is thought that the French banking market is fully consolidated

Entries and exits

La Banque Postale was created on 1 January 2006

Egg withdraw from the French market shortly after entry

Product analysis

Typical product characteristics

Product innovation

Distribution

One quarter of consumers bank online

Meanwhile, other banking channels have remained popular

CHAPTER 4 FORECASTING THE CONSUMER CREDIT MARKET IN FRANCE

Forecasting gross advances

Gross advances in the French consumer credit market will reach €206.6 billion in 2010

A number of factors will determine this growth

Future prospects

Strengths

Weaknesses

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 France, 2001-2005e

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

Table 3: GINI Coefficient for selected European countries

Table 4: Segmentation of liquid assets, 2004

Table 5: Examples of finance houses, 2005

Table 6: Consumer credit balances outstanding compared to GDP of selected European countries, 2005

Table 7: Consumer credit balances outstanding per capita of selected European countries, 2005

Table 8: APR of Cofidis personal loans, May 2006

Table 9: Forecast of consumer credit gross advances in the French market, 2005e-2010f

Table 10: Rate of growth of GDP in France, 2001-2005

Table 11: GDP at current rates for major European countries , 2001-2005

Table 12: Inflation in France, 2001-2005

Table 13: Population by age band for Western European countries, 2005

Table 14: Consumer credit gross advances in France, 2001-2005e

Table 15: Consumer credit balances outstanding in France, 2001-2005e

Table 16: Consumer credit as a proportion of total retail lending in France, 2001-2005e

Table 17: Market shares by consumer credit gross advances of products in France, 2004

Table 18: Market shares by consumer credit balances outstanding of products in France, 2004

Table 19: Market share of total consumer credit balances outstanding for the top five French consumer credit providers, 2004

Table 20: Market shares of credit card balances outstanding of the top five French credit card providers, 2004

List of Figures

Figure 1: Gross advances in the French consumer credit market will grow at a CAGR of 7.0 per cent to reach €206.6 billion in 2010, 2001-2010f

Figure 2: Cetelem are the leading consumer credit provider in France, 2004

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

Figure 4: The French economy is the third largest in Europe, 2005

Figure 5: France has enjoyed a period of positive economic growth, 2001 to 2005

Figure 6: The French economy is dominated by the services sector, while the agriculture sector accounts for just 2.2 per cent of economic output, 2005

Figure 7: French inflation has been kept at or below two per cent p[er annum in recent years, 2000-2006

Figure 8: France has a relatively high proportion of its population under 15 years of age in comparison to its peers, 2005

Figure 9: The three pillars of the French retail banking system

Figure 10: Consumer credit gross advances in France have been rising steadily, 2001-2005e

Figure 11: Consumer credit balances outstanding have grown slowly in France, 2001-2005e

Figure 12: Growth in the mortgage market has reduced its share of the market, 2001-2005

Figure 13: Retail finance is the major consumer credit product in terms of gross advances in France, 2004

Figure 14: In terms of balances outstanding, personal loans are the major consumer credit product in France, 2004

Figure 15: Regulatory overview of France, 2005

Figure 16: Consumer credit in France is split almost evenly between banks and other providers, 2004

Figure 17: Cetelem is the leading consumer credit provider in France, 2004

Figure 18: Caisse d'Epargne is the leading credit card lender in France, 2004

Figure 19: Main merger and acquisition activities in the French market, 1996-2005

Figure 20: Gross advances in the French consumer credit market will grow at a CAGR of 7.0 per cent to reach €206.6 billion in 2010, 2001-2010f

Figure 21: Datamonitor's core consulting capabilities