Consumer Credit in the Nordic Region 2006

Consumer Credit in the Nordic region 2006 is an invaluable guide to the consumer credit market in one of the most consolidated markets in Europe. This report covers the consumer credit market in Denmark, Finland, Norway and Sweden. The regulatory environment, market size and forecast for each country is provided along with competitor market shares for the region.

• 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

Personal loans dominate the consumer credit market in the Nordic region. This is because the Nordic region has a strong branch network with only a few major players. Therefore, consumers are more inclined to go to their local branch when they need credit for purchases.

Credit cards (with the exception of Norway) and POS retail finance market are not popular in the Nordic region, further enhancing the personal loan market.

Foreign new entrants do not typically compete on price. The entrants instead offer accessibility with online applications and quick decisions. These new lenders have a different lending philosophy and typically have far less strict lending criteria compared to the established Nordic banks.

• Learn how the Nordic 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 Nordic 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 The Nordics

Unemployment

Demographics

Market structure

General structure of the Nordic retail banking market

The structure of the Swedish banking market

Swedish commercial banks (joint stock banks)

Foreign banks

Savings banks

Co-operative banks

Market size

Total consumer credit

Consumer credit gross advances

Consumer credit balances outstanding

Consumer credit as a proportion of total retail lending in the Nordics

Consumer credit as a proportion of GDP in the Nordics

Consumer credit per capita in the Nordics

Consumer credit product statistics

Consumer credit balances outstanding by product

Regulatory environment

Regulatory environment in Denmark

Industry regulators in Denmark

Industry associations in Denmark

Regulatory environment in Finland

Industry regulators in Finland

Industry associations in Finland

Regulatory environment in Norway

Industry regulators in Norway

Industry associations in Norway

Regulatory environment in Sweden

Industry regulators in Sweden

Industry associations in Sweden

Credit bureaux

Experian

Regulatory issues in the market

European consumer credit directive

The Credit Institutions Act in Finland

The Act on the Adjustment of the Debts of a Private Individual in Finland

The Banking and Financing Business Act in Sweden

The Capital Adequacy and Large Exposures Act in Sweden

Consumer Credit Act in Sweden

Financial advice to consumers in Sweden

CHAPTER 3 COMPETITOR AND PRODUCT OVERVIEW

Consumer credit market shares by institution

Banks are the main players in the Nordic market

Consumer credit market shares by competitor

Danske Bank is the leading consumer credit provider in the Nordic region

Profiles of the top five consumer credit providers

Danske Bank

Nordea Bank

FöreningsSparbanken

Handelsbanken

SE Banken

Top five credit card lenders

Market share by balances outstanding

Competitor developments

The Nordic banking market has become increasingly consolidated

New entrants have contributed to growth in the consumer credit market

Product analysis

Typical product design of a Danish personal loan

The Nordic region is not innovative in its product range

Distribution

Internet banking

Finland is the world leader in Internet banking

Nordea is a world leader of Internet banking

New methods of distribution

CHAPTER 4 FORECASTING THE CONSUMER CREDIT MARKET IN THE NORDICS

Forecasting gross advances

Gross advances in the Nordic consumer credit market will reach €113.5 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

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 Nordics, 2001-2005

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

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

Table 4: Composition of Nordic countries GDP by sector, 2005

Table 5: Inflation in selected European countries, 2005

Table 6: GINI Coefficient for selected European countries

Table 7: Labor statistics in the Nordics, 2005

Table 8: Population distribution according to age group in the Nordic region, 2005

Table 9: Comparison of rates available for personal loans in Denmark, 2005

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

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

Table 12: Segmentation of liquid assets in the Nordic region, 2004

Table 13: Number of unemployed in the Nordic region, 2000-2005

Table 14: Unemployment rates in the Nordic region, 2000-2005

Table 15: Consumer credit gross advances in the Nordics, 2001-2005

Table 16: Consumer credit balances outstanding in the Nordics, 2001-2005

Table 17: Consumer credit as a proportion of total retail lending in the Nordics, 2001-2005

Table 18: Consumer credit as a proportion of GDP in the Nordics, 2005

Table 19: Consumer credit balances outstanding per capita in the Nordics, 2001-2005

Table 20: Consumer credit balances outstanding by product in the Nordics, 2004

Table 21: Consumer credit balances outstanding by product in the Denmark, 2004

Table 22: Consumer credit balances outstanding by product in the Finland, 2004

Table 23: Consumer credit balances outstanding by product in the Norway, 2004

Table 24: Consumer credit balances outstanding by product in the Sweden, 2004

Table 25: Market shares of the leading consumer credit providers in the Nordic region, 2004

Table 26: Market shares of the leading credit card providers in the Nordic region, 2004

List of Figures

Figure 1: Gross advances in the Nordic consumer credit market will grow at CAGR 5.3 per cent to reach €113.5 billion in 2010, 2001-2010f

Figure 2: Danske Bank is the leading consumer credit provider in the Nordic region, 2004

Figure 3: Key statistics for consumer credit in the Nordic region, 2005

Figure 4: Following a slowdown in 2001-2, real GDP growth in the Nordic are has picked up, 2000-2005

Figure 5: Sweden has the highest level of liquid assets in the Nordic region, 2004

Figure 6: Unemployment has continued to remain high in Finland, while Norway, Denmark and Sweden have seen an increase in their unemployment rates in recent years, 2000- 2005

Figure 7: The four pillars of Nordic Banking, 2006

Figure 8: While the Norwegian market is the largest in absolute terms, the Danish consumer credit market has expanded the fastest in recent years, 2001-2005

Figure 9: Consumer credit balances outstanding in Sweden have increased slowly, while the rest of the Nordic region has seen rapid growth in the same period, 2001-2005e

Figure 10: Finland has the highest level of consumer credit as a proportion of total retail lending, but this has been falling, 2001-2005

Figure 11: Denmark has the highest level of consumer credit, in the Nordics, in relation to its overall economy, 2005

Figure 12: Norwegians have the highest outstanding consumer credit debt in the Nordic region, 2005

Figure 13: Personal loans are the major consumer credit product in the Nordic region, 2004

Figure 14: Regulatory overview of Denmark, 2006

Figure 15: Regulatory overview of Finland, 2006

Figure 16: Regulatory overview of Norway, 2006

Figure 17: Regulatory overview of Sweden, 2006

Figure 18: Banks in the Nordic region dominate the consumer credit market, 2004

Figure 19: Danske Bank is the leading consumer credit provider in the Nordic region, 2004

Figure 20: DnB NOR is the leading credit card lender in the Nordics, 2004

Figure 21: Acquisitions of banks by the top five consumer credit providers in the Nordics, 1997-2005

Figure 22: Lenders are advertising on online auction sites, which are increasingly popular in Sweden, 2006

Figure 23: Gross advances in the Nordic consumer credit market will grow at CAGR 5.3 per cent to reach €113.5 billion in 2010, 2001-2010f

Figure 24 Datamonitor's core consulting capabilities