Consumer Lending Industry Profile

Companies in this industry make unsecured cash loans to consumers. Major companies include EZCORP, FirstCash, OneMain Financial, and Sallie Mae (all based in the US), along with Orient Corporation (Japan), and Tesco Bank and Vanquis Banking Group (both based in the UK).

Global debt has reached over $320 trillion in 2024 due to falling borrowing costs and rising risk appetite, according to the Institute for International Finance. In the US, total consumer debt increased to $17.9 trillion in 2024, according to the Federal Reserve's New York District. Consumer lending companies generally do business locally or within their country of origin, but globalization and greater access to the internet are spurring companies to pursue international growth.

The US consumer lending industry consists of more than 14,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $37 billion.

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 or targeting niche markets. The US industry is highly concentrated: the 50 largest companies account for about 85% of revenue.

The federal financial reform law passed in 2010 created a tougher business environment for consumer finance firms. The regulations restrict credit card companies from imposing interest ...