Lending Industry Profile

Companies in this industry provide secured and unsecured loans and other credit and financing products but do not act as depository banks. Major companies include US-based American Express, Capital One Financial, Discover Financial, OneMain Holdings, and SLM (better known as Sallie Mae), as well as Housing Development Finance (India) and Provident Financial (UK).

Globalization and greater access to the internet are spurring companies to pursue growth internationally. Many large companies already have international operations and continue to expand, while small lenders tend to focus on the community or their country of origin. Some microlenders operate without geographic borders. Regulations governing lending practices vary from country to country.

The US nondepository lending industry includes about 46,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $610 billion.

Included in this industry are companies engaged in agricultural, auto, cash, commercial, commercial real estate, construction, personal, and small business lending. Credit card companies, pawn shops, home improvement, payday, and student loan companies are also included in this industry, as are companies that provide infrastructure financing, mortgage banking services, and receivables lending.

COMPETITIVE LANDSCAPE

Demand is driven by interest rates, consumer confidence, and capital spending by businesses. The profitability of individual companies depends on their ability to originate, service, and collect loans, as well as to collect fees and interest on credit and other financing products. Large companies have ...