Consumer Lending
Competitive Landscape
Demand is driven by consumer income and demographics. The profitability of individual companies depends on the correct assessment of repayment likelihood and effective collections activities. Large companies enjoy economies of scale in securing access to capital. Small companies can compete effectively by choosing favorable locations. The industry is capital-intensive: annual revenue per worker is about $400,000.
Opportunities
Hybrid Credit/Pre-paid Cards - As a result of the recession of the late 2000s and the resulting credit crunch, the industry is looking for new ways to allow consumers...
Business Challenges
Regulatory Overhaul of Consumer Lending - The financial reform law passed in 2010 expands federal regulation of the consumer finance industry and includes restrictions on interest rate hikes and fees credit...