Loan Administration, Check Cashing & Other Services in Canada Industry Market Research Report Now Available from IBISWorld

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The Loan Administration, Check Cashing and Other Services industry is largely dependent on the state of the overall economy, which determines how able and willing consumers and businesses are to repay loans; therefore, after a brief dip during the recession, corporate recovery allowed the industry to bounce back a bit, and increased housing starts and disposable income will spur demand from consumers over the next five year. For these reasons, industry research firm IBISWorld has updated a report on the Loan Administration, Check Cashing and Other Services industry in its growing industry report collection.

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Despite increasing competition, revenue will fare better as disposable incomes rise.

Canada fared better with the financial meltdown than the United States and Europe. It was the first of the G-7 countries to propel itself out of the recession. Over the past five years, consumption-based growth drove Canada's economy. A significant proportion of this consumption was debt financed. Since the global economic conditions were uncertain at best and the Canadian dollar appreciated significantly over the past five years, export based growth was limited. This increase in Canadian consumers' appetite for debt benefited the Loan Administration, Check Cashing and Other Services industry by increasing demand for consumer financing, home loans and mortgages.

Nonetheless, the competition in the industry remained tough and the low interest rate on loans reduced the fees that industry operators could charge for their services, which kept revenue growth subdued and spurred consolidation trends within the industry. Consequently, industry revenue is expected to increase at an annualized rate of 1.0% to $10.6 billion in the five years to 2014. However, revenue is expected to fall 0.2% in 2014 due to an expected decrease in Canadian consumers' demand for more credit-based consumption, which could pose a threat to this industry going forward.

According to IBISWorld Industry Analyst Zeeshan Haider, “Over the next five years, loan servicing companies are forecast to focus on developing technology that will lower their reliance on labour, thus further increasing profit margins.” Additionally, consumer demand for lending products in upstream industries will rise as the economy makes a full recovery. Improvements in the housing sector will increase wealth and make consumers more willing to borrow, which will increase demand for loan servicing.

“However, there are significant structural changes taking place in Canada's credit markets, with some analysts proclaiming that Canadians have been taking on too much leverage and there is another credit bubble developing,” says Haider. Moody's presented similar evidence in September 2012 in its report on the consumer credit market in Canada, which warned that Canada's consumption-based growth may not last very long if people are unable to pay their debts and taking on leverage becomes hard. This could potentially threaten the loan administration segment of this industry, which is fed by servicing mortgage, auto and other loans.

For more information, visit IBISWorld’s Loan Administration, Check Cashing & Other Services in Canada industry report page.

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IBISWorld industry Report Key Topics

This Loan Administration, Check Cashing and Other Services loans, most notably mortgages. It does not originate loans, which includes legally arranging and issuing the loan; servicing loans includes performing all of the administrative aspects of the loan. The industry also performs money transmission services, which includes selling and cashing traveler's checks, money orders and cashier's checks, while also renting safe deposit boxes.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.

Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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