Industry Statistics and Trends
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 6.7 % over the past five years, to reach an estimated $1.3bn in 2024.
Trends and Insights
Non-bank lenders have enjoyed higher incomes and margins thanks to interest rate hikes
- Previously low interest rates subdued net interest margins and revenue streams for lenders.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Technology will revolutionise non-bank financial institutions, becoming crucial for sustaining competitiveness
- As technology continues to advance, non-banks and other financial institutions are exploring using technology to enhance efficiency, scalability and accuracy. Technology’s role will become a critical factor in driving success in the industry. An arms race to develop the most effective automated services for lending and financing is set to ease wage cost pressures for many non-banks.
Biggest companies in the Non-Banks and Other Financial Institutions in New Zealand
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
UDC Finance | 400.4 | |
Latitude Financial Services | 277.0 | |
Motor Trade Finance | 116.9 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Personal loans, Commercial loans and Housing finance. Personal loans is the largest segment of the Non-Banks and Other Financial Institutions in New Zealand.
Trends and Insights
Wider economic uncertainty and surging borrowing costs have prevented some customers from seeking personal loans
- Personal lending includes personal loans, margin loans, credit cards and pay later services.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Industry operators primarily provide finance to retail and commercial customers. This includes both deposit-taking and non-deposit taking firms that provide credit to retail, corporate and wholesale customers primarily on a financial-service basis. The industry excludes operating banks.
What's included in this industry?
Personal loansCommercial loansHousing financeHire purchase Finance leasesCompanies
UDC FinanceLatitude Financial ServicesMotor Trade FinancePurchase this report to view all 5 major companies in this industry.
Related Terms
WAREHOUSE FACILITIESFINTECHNET INTEREST MARGINIndustry Code
ANZSIC 6222 - Non-Banks and Other Financial Institutions in New Zealand
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Cash rate increases to combat inflation have allowed non-bank lenders to raise their net interest margins and profitability. Non-bank deposit-taking institutions are in an ad...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Economic uncertainty and increased borrowing costs have resulted in a decline in personal lending. As consumers become more conscious about debt, they favour forms of lending...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Lenders and financiers can use their presence in the Canterbury region as a staging ground for New Zealand’s South Island. They can also benefit from the concentration of bus...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
International giants are contributing to market fragmentation. The expansion of firms like Revolut into New Zealand is diluting the industry's market concentration, as these ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Larger non-banks are acquiring assets to bolster expansion and diversify business operations. UDC's purchase of Bank Of Queensland's New Zealand loan book exemplifies this tr...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of UDC Finance's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Latitude Financial Services's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Motor Trade Finance's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for UDC Finance, and factors influencing its performance in the industry
- Description and key data for Latitude Financial Services, and factors influencing its performance in the industry
- Description and key data for Motor Trade Finance, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The RBNZ’s cash rate decisions heavily influence non-bank lenders' revenue. When this rate changes, it directly impacts lenders' cost of funding and pricing on their loan pro...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Interest rates greatly influence industry profitability. Interest rate hikes have increased funding costs for lenders but have also resulted in larger spreads, hence boosting...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Non-Banks and Other Financial Institutions industry in New Zealand in 2024?
The market size of the Non-Banks and Other Financial Institutions industry in New Zealand is $1.3bn in 2024.
How many businesses are there in the Non-Banks and Other Financial Institutions in New Zealand industry in 2024?
There are 782 businesses in the Non-Banks and Other Financial Institutions industry in New Zealand, which has grown at a CAGR of 3.0 % between 2019 and 2024.
Has the Non-Banks and Other Financial Institutions industry in New Zealand grown or declined over the past 5 years?
The market size of the Non-Banks and Other Financial Institutions industry in New Zealand has been growing at a CAGR of 6.7 % between 2019 and 2024.
What is the forecast growth of the Non-Banks and Other Financial Institutions industry in New Zealand over the next 5 years?
Over the next five years, the Non-Banks and Other Financial Institutions industry in New Zealand is expected to grow.
What are the biggest companies in the Non-Banks and Other Financial Institutions market in New Zealand?
The biggest companies operating in the Non-Banks and Other Financial Institutions market in New Zealand are UDC Finance, Latitude Financial Services and Motor Trade Finance
What does the Non-Banks and Other Financial Institutions in New Zealand include?
Personal loans and Commercial loans are part of the Non-Banks and Other Financial Institutions industry.
Which companies have the highest market share in the Non-Banks and Other Financial Institutions in New Zealand?
The company holding the most market share in New Zealand is UDC Finance.
How competitive is the Non-Banks and Other Financial Institutions industry in New Zealand?
The level of competition is high and increasing in the Non-Banks and Other Financial Institutions industry in New Zealand.
Related Industries
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Competitors
Complementors
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Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in New Zealand include:
- Statistics New Zealand
- New Zealand Company Register
- Ministry of Business, Innovation & Employment
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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