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Retailer Consumer Finance and Banking in Europe
© Finaccord Ltd., 2013 1
Retailer Consumer Finance
and Banking in Europe Report prospectus
December 2013
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Retailer Consumer Finance and Banking in Europe
© Finaccord Ltd., 2013 2
Prospectus contents
What is the research?
What is the rationale?
What methodology has been used?
How do retailers surveyed break down?
Which specific retailing groups have been researched
What is the report structure?
What are the key features of the research?
How can the research be used?
How can the PartnerBASE™ be used?
Who can use the research?
What are some of the key findings?
What is the cost and format?
What other reports are available?
How can the research be purchased?
3
4-5
6
7-8
9
10
11
12
13
14
15-18
19
20
21
Page
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Retailer Consumer Finance and Banking in Europe
© Finaccord Ltd., 2013 3
What is the research?
Retailer Consumer Finance and Banking in Europe is a report, based on a survey of over 3,300
prominent retail brands in 33 countries, about the provision of consumer finance at the point of sale
by major retailers across Europe. Retailer initiatives in savings deposits, personal loans, mortgages
and international remittances are also considered.
Countries covered are Austria, Belgium, Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic,
Denmark, Estonia, Finland, France, Germany, Georgia, Greece, Hungary, Ireland, Italy, Latvia,
Lithuania, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia,
Spain, Sweden, Switzerland, Turkey, UK, and Ukraine.
In total, the research identifies over 760 consumer finance schemes and well over 100 product
initiatives in retailer banking, thereby providing a definitive analysis of retailer consumer finance and
banking in Europe that goes far beyond the scope of previous published research.
Moreover, the PartnerBASE™ dataset that accompanies the report details each of the many retailer
consumer finance and banking programs traced by Finaccord, specifying the operating models
used by retailers and the identities and ultimate holding companies of the ultimate product
providers in each case.
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Retailer Consumer Finance and Banking in Europe
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What is the rationale?
A number of factors, some of which are specific to consumer finance or banking and some to
retailing, provide the rationale for the development of this report. With reference to consumer
finance and banking, in particular, these factors include those which follow:
- the consumer credit markets of many countries are continuing to grow and retailers can take
advantage of this through setting up their own consumer finance schemes;
- in terms of the outright number of opportunities, retailing is one of the most important fields in
which providers of consumer finance can establish partnerships;
- retailer-branded banks can represent an attractive alternative to mainstream consumer banks in
markets in which banking sector consolidation has reduced the range of options available;
- the customer information gathered from consumer finance and banking products can be used to
cross-sell insurance and other services.
Furthermore, dynamics in the retailing market itself also give rise to increasing rationale both for
retailer consumer finance and banking and a comprehensive pan-European study on the subject.
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What is the rationale? (continued)
Key developments in the retailing sector include:
- an improving environment for consumer lending, thereby encouraging retailers to develop their
own consumer finance schemes in order to capture a share of this market;
- retailer consolidation in both more and less developed markets which helps to produce national
champions with the branding, muscle and general profile needed to succeed in the consumer
finance and banking sectors in these countries;
- retailer growth in the less developed markets as an increasing proportion of consumers allocate
their expenditure to formal retailing concepts as opposed to informal street markets and the like;
- a mature environment for retailing in the more developed markets which signifies that retailers
need to investigate new means of achieving revenue growth which can include financial services, in
general, and consumer finance and banking, in particular;
- increasing internationalization which potentially paves the way for cross-border alliances between
retailers and mainstream banks as epitomized, for example, by the link between Carrefour and BNP
Paribas Personal Finance.
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Retailer Consumer Finance and Banking in Europe
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What methodology has been used?
The main research input into this study is Finaccord’s on-going investigation of the involvement in
financial services, in general, and consumer finance and banking, in particular, of over 3,300 major
retailing brands across 33 countries in Europe.
In the specific context of this report, the aim of the investigation is to gather top-level data concerning
the consumer finance and banking products offered by the organisations in question, the operating
models that they use and the providers with which they work in this context.
Naturally, given that there are literally millions of smaller retailers in total in the territories reviewed,
the majority with just a single outlet, Finaccord has sought to focus on the very largest entities that
are likely to be of most strategic interest to organisations involved in the consumer finance and
banking sectors. Indeed, the major retailers break down by category and by country as illustrated in
the graphics overleaf.
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How do retailers surveyed break down? (1)
Fashion, 699
BY TYPE BY DISTRIBUTION MODEL
Supermarket /
hypermarket, 490
Consumer
electronics,
564
DIY / furniture /
home, 459
Health and
beauty, 231
Speciality, 184
Fuel, 252
Department store /
variety, 200
Sporting goods, 131 Books and media, 104
Offline only, 1,455
Online only, 503
Mixed, 1,356
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Retailer Consumer Finance and Banking in Europe
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How do retailers surveyed break down? (2)
BY COUNTRY
UK, 316
Turkey, 231
Germany, 211
France, 197
Poland, 193
Italy, 173
Spain, 169
Russia, 166 Netherlands, 150 Sweden, 110
Belgium, 102
Switzerland, 101
Ireland, 89
Denmark, 87
Austria, 83
Finland, 76
Norway, 76
Portugal, 73
Hungary, 72 Romania, 64
Greece, 59 Georgia, 50
Czech Republic, 90
Others, 376
of which Ukraine, 50,
Lithuania, 46
Slovakia, 45
Serbia, 40
Croatia, 39
Bulgaria, 37
Slovenia, 36
Estonia, 32
Latvia, 30
Bosnia-Herzegovina, 21
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Retailer Consumer Finance and Banking in Europe
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Which specific retailing groups
have been researched?
Among the major retailing groups included in the research are:
3 Suisses
Agorà Network
Ahold
Aldi
Alliance Boots
Amazon
Arcadia
AS Watson
Aachen
AVIA International
Axel Johnson
Baltika Group
Bauhaus
Baumax
Bertelsmann
Bestseller
BP
C&A
Carrefour
Casino
CBA
Celesio
Colruyt
Conforama
Coop Norden
Certified
Dansk Supermarked
Dirty
Delhaize Group
Dixons Retail
dm-drogeriemarkt
E. Leclerc
EDEKA
El Corte Inglés
El Dorado
ENI
Eroski
Erector
Neurotics
Expert International
ExxonMobil
Fancy
Fressnapf
Gasport
Groupe Galeries Lafayette
Grupo Inditex
GUM
Harald Nyborg
Home Retail Group
House of Fraser
ICA
IKANO
IKI
Kering
Kesko
Kingfisher
Leroy Merlin
Les Mousquetaires (ITM)
Louis Delhaize
Lukoil
Marks & Spencer
Maus Frères
Mercator
Metro Group
Migros
Modelo Continente
MOL
Morrisons
OMV
OTTO
Oxylane
PKN Orlen
Rakuten
Rautakesko
Reitan
Resurs Group
REWE
Royal Dutch Shell
Schwarz Group
Sedmoi Continent
Shop Direct Group
SOK
Sonae
Spar (Austria)
Sports Direct
Staples
Statoil
Stockmann
Svyaznoy
Système U
Tchibo
Tengelmann
Tesco
Total
Toys R Us
Varner Gruppen
Vivarte
VP Market
X5
Zalando
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Retailer Consumer Finance and Banking in Europe
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What is the report structure?
0. Executive Summary: providing a concise evaluation of the principal findings of the report.
1. Introduction: offering rationale, description of methodology and other related notes.
2. Regional Overview: a pan-European overview of the activity of major retail brands in consumer
finance and banking. As well as a comparative analysis of operating models used in these areas,
this section also analyses the importance of providers owned by major financial groups such as
BNP Paribas, Crédit Agricole, Santander and Société Générale, plus comparatively recent market
entrants such as Klarna.
3. Austria: an in-depth analysis of the market for retailer consumer finance and banking in Austria.
Key partnerships are identified between major Austrian retail chains and providers of consumer
finance, and detailed commentary is also provided to describe the involvement of the same
universe of retailers in the field of banking products, namely savings deposits, personal loans,
mortgages and international remittances.
4 - 35: chapters for all other countries are structured along similar lines to that for Austria.
36. Appendix: this final section provides a comprehensive listing of retailers operating in the areas
of consumer finance or banking through captive or joint venture providers.
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Retailer Consumer Finance and Banking in Europe
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What are the key features of the research?
Key features of this report include:
• definitive coverage of the involvement in consumer finance and banking of over 3,300 major retail
brands in 33 countries across Europe;
• focus on over 760 consumer finance schemes: which providers of point-of-sale finance are strong
in which countries and with which retailers do they collaborate?
• comprehensive listing of retailers using captive or joint venture point-of-sale finance divisions or
subsidiaries for their consumer finance schemes;
• identification of well over 100 individual product initiatives in retailer banking including the split by
country, retailer category and retailer distribution model (i.e. offline-only, online-only and mixed);
• identification of numerous consumer finance and banking product providers with which major retail
chains co-operate including both long-established banking organisations and innovative new
entrants.
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Retailer Consumer Finance and Banking in Europe
© Finaccord Ltd., 2013 12
How can the research be used?
You may be able to use this report and the PartnerBASE™ that accompanies it in one or more of
the following ways:
• gain rapid access to a unique pan-European source of intelligence covering virtually all significant
retail brands across an extremely wide range of geographies;
• appreciate how the prevalence of initiatives in retailer consumer finance and banking varies by
country, by retailer category and by retailer distribution model;
• monitor the activity of key national and international competitors in the retailer consumer finance
sector including the many European subsidiaries of BNP Paribas, Crédit Agricole, Klarna,
Santander and Société Générale;
• evaluate the potential for acquiring the existing consumer finance portfolios of retail groups by
purchasing equity stakes in captive finance entities or taking over internally-managed schemes;
• learn more about the growing number of retailer banks across Europe including Banque Casino,
Carrefour Banque, ICA Banken, IKANO Bank, Oney Banque Accord, Sainsbury's Bank and Tesco
Bank.
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Retailer Consumer Finance and Banking in Europe
© Finaccord Ltd., 2013
Retailer Category Country Product typeProduct
offered?Operating model Partner(s) UHC(s) of partner(s)
Elkjøp Consumer electronics Norway Consumer finance Yes External partner Cresco Access DNB
Ellos Department store / variety Sweden Consumer finance Yes External partner Sofinco Crédit Agricole
El-Salg Consumer electronics Denmark Consumer finance Yes External partner Dan-Aktiv Crédit Agricole
Elvila DIY / furniture / home Romania Consumer finance Yes External partner BRD Finance Société Générale
Emmezeta DIY / furniture / home Croatia Consumer finance Yes External partner CrediFlex Société Générale
EP: Netshop Consumer electronics Germany Consumer finance Yes External partner Santander Consumer Bank Santander
13
How can the PartnerBASE™ be used?
Filter by type
of retailer
Choose operating model Identify product
providers
Look up
specific retailers Filter by
product type
Select country Identify ultimate
owners of partners
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Retailer Consumer Finance and Banking in Europe
© Finaccord Ltd., 2013 14
Who can use the research?
1. Consumer finance companies: this study is an up-to-date and comprehensive source of information
about retailer consumer finance in 33 countries and represents an indispensable guide to over 760
retail brands that operate consumer finance programs;
2. Banks and insurance companies: consumer finance schemes can form an effective basis either for
developing broader retailer banking operations or for marketing a range of insurance products to large
and well-defined groups of consumers;
3. Retailers: consumer finance programs represent an important activity for numerous retail brands in
Europe but how do they organise their involvement in this field and with which partner organisations
do they collaborate?
4. Providers of international remittance services: in addition to coverage of the mainstream banking
products of savings deposits, personal loans and mortgages, the research also identifies partnerships
between major retailers and providers of international remittance services;
5. Management consultancies: are you either assisting a retailer with the development of a consumer
finance or banking scheme or advising a bank or other lending institutions with respect to partnership
opportunities with major retail brands? This research will help you to evaluate the options in retailer
consumer finance and banking, saving time and effort on researching the subject yourself.
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Retailer Consumer Finance and Banking in Europe
© Finaccord Ltd., 2013 15
What are some of the key findings?
1. Retailers in two categories – namely, consumer electronics and DIY, furniture and
home products – are the most likely to have established schemes for consumer finance
Source: Finaccord PartnerBASE
10.6%
46.7%
31.5%
51.9%
7.4%
0.8%
4.3%
16.8%
21.4%
12.7%
32.4%
14.1%
28.7%
0% 20% 40% 60% 80% 100%
Books and media
Consumer electronics
Department store / variety
DIY / furniture / home
Fashion
Fuel
Health and beauty
Speciality
Sporting goods
Supermarket / hypermarket
Online only
Offline only
Mixed
% of major retail brands investigated with a consumer finance scheme
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What are some of the key findings? (cont.)
2. Across the 33 countries, 23% of the major retailers surveyed have an arrangement for consumer
finance with almost 30% adhering to an operating model other than use of a single, external partner
Source: Finaccord PartnerBASE
0%
20%
40%
60%
80%
100%
Provision rate Operating model
(see legend)
Undisclosed
Other
Internal
Joint venture partner
Captive partner
Multiple external partners
External partner
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Retailer Consumer Finance and Banking in Europe
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What are some of the key findings? (cont.)
3. When its point-of-sale finance partnerships are viewed in weighted terms,
Barclays Partner Finance seems likely to be the leading provider in the UK
Hitachi Capital (UK), 24.6%
Barclays Partner
Finance, 23.2%
Creation Financial Services (LaSer
UK), 11.6%
V12 Retail Finance, 10.1%
IKANO Bank, 8.7%
Shop Direct Finance
Company, 7.2%
Freedom Finance, 4.3%
Moneyway, 2.9%
Pay4Later, 2.9%
other, 4.3%
UNWEIGHTED SHARE OF PARTNERSHIPS
Barclays Partner
Finance, 20.0%
Shop Direct Finance
Company, 17.2%
Hitachi Capital (UK), 15.1%
Creation Financial Services (LaSer
UK), 14.6%
V12 Retail Finance, 9.4%
IKANO Bank, 7.1%
Moneyway, 3.7%
Pay4Later, 3.6%
Redcats Finance, 3.0%
other, 6.4%
WEIGHTED SHARE OF PARTNERSHIPS
Source: Finaccord PartnerBASE
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Retailer Consumer Finance and Banking in Europe
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What are some of the key findings? (cont.)
4. Key findings from the executive summary include:
• Sweden hosts the retailers most likely to offer consumer finance with a provision rate of 46.4%,
followed by Poland at 46.1% and Germany at 43.6%;
• finance providers owned wholly or in part by BNP Paribas hold the most partnerships in this field
across Europe, with 161 different retail brands using one of its subsidiaries or joint ventures,
including the 66 retailers sourcing consumer finance from subsidiaries of LaSer Group, its joint
venture with Galeries Lafayette;
• 153 different entities are reported as non-internal partners of retail brands for consumer finance
schemes identified - many of these are entities in which the retail brands have no ownership stake
although a total of 25 different captive and joint venture providers are visible in consumer finance,
with 25 also active in retailer banking, and with some overlap between these two groups;
• at 7.8% of supermarket and hypermarket brands researched, this is the retailer category that is
most likely to be involved in mainstream banking, followed by department stores and variety
retailers, at 7.5%.
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Retailer Consumer Finance and Banking in Europe
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What is the cost and format?
Retailer Consumer Finance and Banking in Europe is available as a standard PDF document. The
PartnerBASE™ that accompanies it at no further charge is in Excel format. Costs for this research
set and selected other comparable, international titles are as follows:
* For UK-based clients, VAT at the prevailing rate will be added to the basic price. Costs quoted are for a single site user licence only. For
a corporate user licence, please see the final slide for further details. Invoices can be paid in EUR or USD, at the prevailing exchange rate,
if preferred. For acquisition of multiple reports, please contact Finaccord - discounts may be available.
Retailer Consumer Finance and Banking in Europe GBP 1,295
Global Retailer Consumer Finance and Banking GBP 2,495
Global Retailer Insurance and Assistance GBP 2,495
Global Retailer Online Payment Acceptance GBP 3,495
Global Retailer Payment, Gift and Loyalty Cards GBP 3,495
Retailer Consumer Finance and Banking in the Asia-Pacific Region GBP 995
Retailer Consumer Finance and Banking in North and Latin America GBP 995
Retailer Insurance and Assistance in the Asia-Pacific Region GBP 995
Retailer Insurance and Assistance in Europe GBP 1,295
Retailer Insurance and Assistance in North and Latin America GBP 995
Retailer Online Payment Acceptance in the Asia-Pacific Region GBP 1,295
Retailer Online Payment Acceptance in Europe GBP 1,995
Retailer Online Payment Acceptance in North and Latin America GBP 1,295
Retailer Payment, Gift and Loyalty Cards in Europe GBP 1,995
Retailer Payment, Gift and Loyalty Cards in the Asia-Pacific Region GBP 1,295
Retailer Payment, Gift and Loyalty Cards in North and Latin America GBP 1,295
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What other reports are available?
Australia GBP 795 France GBP 795 Malaysia GBP 795 South Korea GBP 795
Brazil GBP 795 Germany GBP 795 Mexico GBP 795 Spain GBP 795
Canada GBP 795 India GBP 795 Poland GBP 795 Turkey GBP 795
Chile GBP 795 Italy GBP 795 Russia GBP 795 UK GBP 795
China GBP 795 Japan GBP 795 South Africa GBP 795 USA GBP 795
Retailer Payments, Banking, Insurance and Assistance in...
A variety of country-specific reports and associated PartnerBASE™ datasets about retailer
payments, banking, insurance and assistance are also available from Finaccord, as listed below.
These are based in part upon the same research programs as the multi-country titles but focus
instead on particular countries.
* The same notes apply here as on the previous page
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How can the research be purchased?
Simple. Just go to the relevant area of the Finaccord web site available at
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• report required
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