Emerging Opportunities in the
South African Consumer Finance
Market: Market Size, Strategies,
Products and Competitive
Landscape: Market Profile
Market Profile
Reference code: FS1136MP
BRICdata
Published: September 2012
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www.bricdata.com
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TABLE OF CONTENTS
TABLE OF CONTENTS
1 Sub-Saharan Africa – Consumer Finance Market Benchmarking .................................................... 5
1.1 Sub-Saharan Africa – Consumer Finance Market Dynamics.................................................................. 5
1.1.1 Housing loans .......................................................................................................................................... 6
1.1.2 Personal loans ......................................................................................................................................... 7
1.1.3 Auto loans ................................................................................................................................................ 8
1.1.4 Credit card loans...................................................................................................................................... 9
1.1.5 Education loans ..................................................................................................................................... 10
1.2 Macroeconomic Factors ........................................................................................................................ 11
2 Consumer Finance Market in South Africa ....................................................................................... 12
2.1 Outlook of Consumer Finance in South Africa ...................................................................................... 12
2.2 South African Consumer Finance Market Dynamics............................................................................. 14
2.2.1 Macroeconomic fundamentals ............................................................................................................... 14
2.2.2 Consumer attitude towards credit .......................................................................................................... 18
2.2.3 Key performance indicators ................................................................................................................... 18
2.2.4 Regulatory framework ........................................................................................................................... 22
2.3 South African Consumer Finance Market Size and Growth Potential ................................................... 23
2.3.1 Overview ................................................................................................................................................ 23
2.3.2 Personal loans ....................................................................................................................................... 25
2.3.3 Credit card loans.................................................................................................................................... 26
2.3.4 Auto loans .............................................................................................................................................. 27
2.3.5 Housing loans ........................................................................................................................................ 28
2.3.6 Education loans ..................................................................................................................................... 29
2.4 Key Trends and Growth Drivers for the South African Consumer Finance Market .............................. 30
2.5 Industry Structure and Competitive Landscape .................................................................................... 33
2.5.1 Company profiles ................................................................................................................................... 34
2.6 Strategies ............................................................................................................................................... 35
2.6.1 Marketing and product strategies .......................................................................................................... 35
2.6.2 Market entry strategies .......................................................................................................................... 36
2.6.3 Expansion and growth strategies .......................................................................................................... 37
2.7 Challenges ............................................................................................................................................. 38
3 Appendix .............................................................................................................................................. 39
3.1 About BRICdata ..................................................................................................................................... 39
3.1.1 Exchange rate........................................................................................................................................ 39
3.1.2 Areas of expertise .................................................................................................................................. 39
3.2 Methodology .......................................................................................................................................... 40
3.3 Disclaimer .............................................................................................................................................. 41
Emerging Opportunities in the South African Consumer Finance Market: Market Size, Strategies,
Page 2
Products and Competitive Landscape: Market Profile
© BRICdata. This product is licensed and is not to be photocopied Published: September 2012
TABLE OF CONTENTS
LIST OF FIGURES
Figure 1: Consumer Finance Market Dynamics in Sub-Saharan African Countries, 2007–2016 .......................................................... 5
Figure 2: Housing Loan Market Dynamics in Sub-Saharan African Countries, 2007–2016 .................................................................. 6
Figure 3: Personal Loans Market Dynamics in Key Sub-Saharan African Countries, 2007–2016 ........................................................ 7
Figure 4: Auto Loans Market Dynamics in Key Sub-Saharan African Countries, 2007–2016 ............................................................... 8
Figure 5: Credit Card Loans Market Dynamics in Key Sub-Saharan African Countries, 2007–2016 .................................................... 9
Figure 6: Education Loans Market Dynamics in Key Sub-Saharan African Countries, 2007–2016 .................................................... 10
Figure 7: South Africa – Future Outlook for Consumer Finance (ZAR Billion) .................................................................................... 13
Figure 8: South African GDP at Constant Prices (US$ Billion), 2007–2016 (Base Year 1999–2000)................................................... 14
Figure 9: South African Inflation Rate (%), 2007–2016 .......................................................................................................................... 15
Figure 10: South African FDI Inflows (US$ Billion), 2007–2010 ............................................................................................................ 16
Figure 11: South African Urban and Rural Population (%), 2007–2016 ................................................................................................ 17
Figure 12: South African Banking Industry Value by Consumer Loans and Deposits (US$ Billion), 2007–2016 .............................. 20
Figure 13: South African Banking Industry Growth by Performance Indictor (%), 2007–2016 ........................................................... 21
Figure 14: South African Consumer Finance Market Size (ZAR Billion), 2007–2016 .......................................................................... 23
Figure 15: South African Consumer Finance Market Size by Category (ZAR Billion), 2007–2016 ..................................................... 24
Figure 16: South African Personal Loans Category Size (ZAR Billion), 2007–2016 ............................................................................ 25
Figure 17: South African Credit Card Loans Category Size (ZAR Billion), 2007–2016 ........................................................................ 26
Figure 18: South African Auto Loans Category Size (ZAR Billion), 2007–2016 ................................................................................... 27
Figure 19: South African Housing Loans Category Size (ZAR Billion), 2007–2016 ............................................................................. 28
Figure 20: South African Education Loans Category Size (ZAR Billion), 2007–2016 .......................................................................... 29
Figure 21: South African Number of Households (Million), 2007–2016................................................................................................ 30
Figure 22: South Africa Mobile Penetration Rate (%), 2007–2016 ........................................................................................................ 31
Figure 23: Top Ten South African Banks by Assets (ZAR Billion), 2011 ............................................................................................. 33
Figure 24: Market Shares of South African Banks (% Share), 2011 ..................................................................................................... 33
Figure 25: Expansion and Growth Strategies – South Africa .............................................................................................................. 37
Figure 26: South African Consumer Finance Market Challenges......................................................................................................... 38
Emerging Opportunities in the South African Consumer Finance Market: Market Size, Strategies,