Non-Depository Financing in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: September 2024
ANZSIC K6230Revenue
$38.6bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
12,124
Businesses
524
Wages
$X.Xbn
Non-Depository Financing in Australia industry analysis
The industry has grown on the back of increased loan volumes and high interest rates. A high interest rate environment has allowed non-bank lenders to charge higher rates, boosting their revenue. However, it has also hiked their funding costs, hindering profitability as net interest margins plunged. The mortgage war in 2023 saw authorised deposit-taking institutions (ADIs) offer competitive rates and attractive packages like cashback. This trend intensified competition and squeezed non-bank lenders' margins in the mortgage segment. Non-bank lenders have attracted a broader consumer base by providing flexible lending terms and user-friendly platforms. They have also filled the service gap left by traditional lenders because of tight lending standards, like increased capital requirements and serviceability buffers.
Trends and Insights
- Non-bank lenders have capitalised on the high interest rate environment by charging more for loans, boosting revenue. However, high interest rates have also ramped up borrowing expenses, pressuring lenders' net interest margins and profitability.
- Shaky economic conditions have prevented some businesses from taking out relatively expensive loans. That's why the commercial loans’ revenue share has fallen in recent years.
- Population centres like Melbourne and Sydney attract general financiers thanks to their high population and business levels. Business hubs like New South Wales and Victoria account for the highest proportions of non-ADIs in Australia.
- Restrictive limits on ADIs have made non-depository financing more appealing. This has prompted an influx of lenders, lowering market share concentration while intensifying competition and buyer power.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 14.0 % over the past five years, to reach an estimated $38.6bn in 2024.
Trends and Insights
The high interest rate environment is a double-edged sword for non-bank lenders
- Non-bank lenders have benefited from the Reserve Bank of Australia's rate hikes. In high interest rate environments, lenders, including non-depository financiers, can charge more for loans. Many non-depository financiers enjoyed a revenue jump in 2022-23 as they passed on rate increases to borrowers. A larger revenue base allows these lenders to distribute their fixed costs over a broader revenue stream.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Non-bank lenders are poised to gravitate towards the commercial sector for growth
- Improving economic conditions will strengthen business confidence and activity. The commercial sector offers a wealth of diverse finance needs, including start-up costs for new businesses, expansion financing for growing companies and operational funding for established firms. This diversity provides a broad scope for non-bank lenders to tap into.
Biggest companies in the Non-Depository Financing in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
Pepper Money | 1,664.4 | |
Toyota Finance Australia | 1,242.6 | |
Firstmac | 999.0 |
To view the market share and analysis for all 6 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 Finance leases. Personal loans is the largest segment of the Non-Depository Financing in Australia.
Trends and Insights
Economic headwinds and interest rate hikes have caused many businesses to shy away from commercial loans
- Commercial loans are issued to businesses to fund expansion plans, day-to-day operations and construction projects. Loan terms vary depending on their purpose. Commercial loans can be secured or unsecured.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Credit Unions and Building Societies in Australia
- National and Regional Commercial Banks in Australia
- Foreign Banks in Australia
Complementors
- Custody, Trustee and Stock Exchange Services in Australia
International industries
- Auto Leasing, Loans & Sales Financing in the US
- Real Estate Loans & Collateralized Debt in the US
- Loan Administration, Check Cashing & Other Services in the US
- Peer-to-Peer Lending Platforms in the US
- Online Mortgage Brokers in the US
Table of Contents
About this industry
Industry definition
The industry includes financiers that lend money or provide credit to retail, corporate and wholesale customers. Financiers in the industry raise funds through wholesale channels and do not incur the liabilities of deposits. Industry operators also lease plant, equipment and machinery on a financial services basis.
What's included in this industry?
Personal loansCommercial loansFinance leasesHousing financeCompanies
Pepper MoneyToyota Finance AustraliaFirstmacPurchase this report to view all 6 major companies in this industry.
Related Terms
Authorised Deposit-Taking Institution (ADI)Registered Financial Corporation (RFC)FINANCIAL TECHNOLOGY (Fintech)Industry Code
ANZSIC 6230 - Non-Depository Financing in Australia
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
Non-bank lenders have capitalised on the high interest rate environment by charging more for loans, boosting revenue. However, high interest rates have also ramped up borrowi...
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
Shaky economic conditions have prevented some businesses from taking out relatively expensive loans. That's why the commercial loans’ revenue share has fallen in recent years...
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
Population centres like Melbourne and Sydney attract general financiers thanks to their high population and business levels. Business hubs like New South Wales and Victoria a...
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
Restrictive limits on ADIs have made non-depository financing more appealing. This has prompted an influx of lenders, lowering market share concentration while intensifying c...
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
Motor vehicle financiers can leverage their existing brands and networks to offer financing to customers. Cross-selling cars with financing options has been used to great eff...
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 Pepper Money's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Toyota Finance Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Firstmac's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for Pepper Money, and factors influencing its performance in the industry
- Description and key data for Toyota Finance Australia, and factors influencing its performance in the industry
- Description and key data for Firstmac, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
A rise in capital expenditure by the private sector has magnified the need for financing. Non-depository financing is a relatively easy pathway to funding for businesses that...
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
Despite growth in lending volumes, non-bank lenders' profitability has contracted in recent years because of rising interest rates. These lenders have struggled to hike their...
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)
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 Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
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.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Non-Depository Financing industry in Australia in 2024?
The market size of the Non-Depository Financing industry in Australia is $38.6bn in 2024.
How many businesses are there in the Non-Depository Financing in Australia industry in 2024?
There are 524 businesses in the Non-Depository Financing industry in Australia, which has grown at a CAGR of 3.3 % between 2019 and 2024.
Has the Non-Depository Financing industry in Australia grown or declined over the past 5 years?
The market size of the Non-Depository Financing industry in Australia has been growing at a CAGR of 14.0 % between 2019 and 2024.
What is the forecast growth of the Non-Depository Financing industry in Australia over the next 5 years?
Over the next five years, the Non-Depository Financing industry in Australia is expected to grow.
What are the biggest companies in the Non-Depository Financing market in Australia?
The biggest companies operating in the Non-Depository Financing market in Australia are Pepper Money, Toyota Finance Australia and Firstmac
What does the Non-Depository Financing in Australia include?
Personal loans and Commercial loans are part of the Non-Depository Financing industry.
Which companies have the highest market share in the Non-Depository Financing in Australia?
The company holding the most market share in Australia is Pepper Money.
How competitive is the Non-Depository Financing industry in Australia?
The level of competition is high and increasing in the Non-Depository Financing industry in Australia.
