Asia Pacific Consumer Credit Practices & Trends 2008 - 2010

The recent economic growth in Asia Pacific has created vast consumer credit opportunities. Currently, consumer credit accounts for 30% of total system loans for Asia Pacific. The growth is expected to continue and consumer credit accounts are expected to increase to 36% by 2010. Along with the expected future growth, presently opportunities exist as well. The current market size of the consumer credit business in Asia Pacific is about $3.88 trillion, however the potential is around twice as much and is estimated at $8 trillion.

This comprehensive report presents The Asian Banker findings and insights derived from extensive study of consumer credit practices and trends in the Asia Pacific region. The report highlights key forces shaping the region?s consumer credit businesses until the end of the decade, discusses core functional capabilities representative of a successful consumer credit business, and addresses extant weaknesses in credit collection and recovery operations.

This report highlights:

The Asian Banker estimates that in Asia Pacific, consumer credit currently represents a $3.9 trillion business. Its potential however is projected at twice as much at an estimated $8 trillion. Taking a closer look at consumer credit, we find that it currently represents 30 percent of total system loans in Asia Pacific banks and contributes to approximately 33 percent of overall income.

By 2010, Asia Pacific banks surveyed have targeted consumer credit to account for 40-50 percent of their loan portfolio. Nonetheless, based on historical precedence, achieving this target may prove more challenging than expected since consumer credit in Asia Pacific has only grown incrementally over the past six years. The report examines the factors currently impeding growth and discusses the necessary operational capabilities required of a first-class consumer credit player.?

Whilst banks strive to grow their consumer credit businesses, they must be mindful of managing risk. Indeed, risk appetites among banks across Asia Pacific have been rising and are captured in significantly higher default rates in certain business lines. Accordingly, smart credit collection and recovery businesses are necessary to address such incidences. The report examines extant weaknesses in debt recovery operations and discusses the necessary capabilities required of a good credit collection and recovery business.

Why you should buy this report:

• Gain insights into the key drivers of consumer credit industry until 2010.
• Understand the core functional capabilities representative of a successful consumer credit business and the challenges that may arise.
• Obtain expert opinion and predictions for growth based on extensive primary engagement with the retail banking industry across 13 markets (Singapore, Malaysia, Indonesia, India, Vietnam, Thailand, Philippines, China, Hong Kong, Taiwan, Korea, Japan and Australia).
• Examine case studies on current recovery operations banks across the region employ, including specific market or portfolio developments and banks' actions.

Who should buy this report:

• Heads of Consumer Banking, Consumer Analytics and Strategic Planning.
• Regulatory bodies who wish to understand the consumer credit industry in Asia Pacific as well as it's various regulatory standards.
• Research analysts in financial institutions.
• Vendors and service providers targeting the financial services.

• Executive Summary
• Chapters 1. Market Structure and Contents
  • 1-1 Penetration of Consumer Lending Across Asia
• Chapters 2. Consumer Credit Composition and Segments
  • 2-1 Market Profile & Dynamics of Mortgage Business
  • 2-2 Market Profile & Dynamics of Credit Card Business
  • 2-3 Market Profile & Dynamics of Auto Lending
  • 2-4 Market Profile & Dynamics of Consumer Financing
  • 2-5 Assessment of the Sub-prime Segment
  • 2-6 Growth of Retail Financial Services Distribution Channels
  • 2-7 Current Credit Bureau Initiatives Across Asia Pacific
  • 2-8 Changing Regulatory Environment and its Impact
• Chapters 3. Consumer Credit: Assessing Capabilities & Challenges in the Marketing Process
  • 3-1 The Level of Marketing Sophistication in Asia Pacific Banks
  • 3-2 The Measurement of Marketing Success in Asia Pacific Banks
  • 3-3 The Marketing Process
• Chapters 4. Consumer Credit: Assessing Capabilities and Challenges in the Loan Origination Process
  • 4-1 Operational Challenges: Key Findings
  • 4-2 The Loan Origination Process
• Chapters 5. Consumer Credit: Assessing Capabilities & Challenges in the Customer & Account Management Process
  • 5-1 Challenges in the Customer Management Process in Asia Pacific Banks
  • 5-2 Assessing the Customer Data Modeling Capability of Asia Pacific Banks
  • 5-3 Assessing the Predictive Modeling Capability of Asia Pacific Banks
  • 5-4 Assessing the Account Automation Capability of Asia Pacific Banks
  • 5-5 The Customer & Account Management Process
• Chapter 6. Consumer Credit: Assessing Capabilities and Challenges in the Fraud Detection and Prevention Process
  • 6-1 Fraud Detection & Prevention Capability: Key Findings
  • 6-2 The Fraud Detection & Prevention Process
• Chapter 7. Credit Collection and Debt Recovery Operation: Tools and Strategies
  • 7-1 Debt Recovery Overview
  • 7-2 Planning and Strategising
  • 7-3 Tactical Level Analysis
• Chapter 8. Consumer Credit Report Conclusion
  • 8-1 Nature and Size of Potential Consumer Credit Business
  • 8-2 Critical Success Factors