1. Market Research
  2. > Financial Services
  3. > Banking
  4. > Bank Lending Market Trends
  5. > Retailer Consumer Finance and Banking in North and Latin America

Retailer Consumer Finance and Banking in North and Latin America is a report, based on a survey of over 1,400 prominent retail brands in 12 countries, about the provision of consumer finance at the point of sale by major retailers. Retailer initiatives in savings deposits, personal loans, mortgages and international remittances are also considered.

Countries covered are Argentina, Brazil, Canada, Chile, Colombia, Costa Rica, Ecuador, Mexico, Paraguay, Peru, Uruguay and the USA.

In total, the research identifies over 200 consumer finance schemes and over 180 product initiatives in retailer banking, thereby providing a definitive analysis of retailer consumer finance and banking in North and Latin America 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.

Key findings from the executive summary include:

- Argentina hosts the retailers most likely to offer consumer finance with a provision rate of 23.5%, followed by Mexico at 22.9% and Paraguay at 20.0%;

- working in conjunction, the US-based duo of Bill Me Later (run by PayPal and thus owned ultimately by eBay) and Alliance Data's Comenity Bank is identifiable as the most common provider of point-of-sale consumer finance in the Americas;

- 53 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 22 different captive and joint venture providers are visible in consumer finance, with 15 also active in retailer banking, and with some overlap between these two groups;

- at 12.8% of department store and variety retail brands researched, this is the retailer category that is most likely to be involved in mainstream banking, followed by supermarket and hypermarket brands, at 11.8%.

Table Of Contents

Retailer Consumer Finance and Banking in North and Latin America
0.0 EXECUTIVE SUMMARY 1
1.0 INTRODUCTION 3
What is this report about? 3
Rationale 3
Rationale arises both from factors specific to consumer finance and banking… 3
… and from dynamics in the retailing market itself 3
Methodology 4
Survey of retailers 4
The survey's scope covers over 1,400 major retail brands drawn from ten categories and 12 countries… 4
… and classified according to their use of offline-only, online-only or mixed distribution models 4
Definitions 6
Consumer finance and banking 6
Operating models 6
Weighted shares 6
PartnerBASE 7
Finaccord 7
2.0 REGIONAL OVERVIEW 8
Consumer finance 8
Provision rates for consumer finance are highest in Argentina and Mexico 8
Department store and variety retailers feature the highest rates of activity 9
Mixed and online-only retailers are more likely to offer finance than are offline-only brands 9
Around a half of consumer finance programs in the region make use of external partners... 11
... albeit with the notable exception of the US, many countries show a preference for captive partners… 11
… or internally-funded schemes 11
The duo of Bill Me Later and Comenity Bank is largely dominant in the US... 12
... which means that it is also dominant in the fragmented regional market 12
Banking products 14
Overview 14
General-purpose loans, savings accounts and mortgages are on offer from a minority of brands 14
Retail brands in Peru and Chile display the greatest rates of involvement in retailer banking 14
Personal loans, mortgages and savings accounts 15
Captive banks account for more than a half of the total number of initiatives identified… 15
… with these most numerous among retail brands in the supermarket / hypermarket category 17
A variety of different partners are involved in retailer banking initiatives in North and Latin America 19
International payments / remittances 20
Where international remittance services are offered, external providers are normally used 20
Major retail brands in five out of 12 countries have developed a proposition in this arena 20
Western Union and MoneyGram are the partners used most regularly by partners from the retail sector 23
3.0 ARGENTINA 24
Introduction 24
Consumer finance 24
Argentina hosts the highest provision rate for point-of-sale finance among major brands in the Americas 24
… with most initiatives organised via internally-funded schemes or captive finance providers 25
A half of categories surveyed host retail brands with involvement in non-card consumer finance 26
Banking products 28
Overview 28
Three major retail brands in Argentina offer general-purpose personal loans to their customers… 28
Personal loans, mortgages and savings accounts 28
… with all utilising external partners in this context 28
International payments / remittances 32
Walmart and its subsidiary Changomas both offer international payment services through Western Union . 32
4.0 BRAZIL 34
Introduction 34
Consumer finance 35
Provision rates for point-of-sale finance are substantially below those found for retailer credit cards 35
No single provider of consumer finance is a clear market leader by number of partnerships 35
Midway Financeira is a substantial player in retailer financial services in Brazil… 35
…as is LuizaCred, a joint venture between Magazine Luiza and Itaú Unibanco 35
The strength of the partnerships of Caixa Econômica Federal make it the leader after weighting 36
Department stores and variety retailers claim the highest provision rate for consumer finance 37
Banking products 39
Overview 39
Five major retail brands in Brazil offer mainstream banking products to their customers… 39
Personal loans, mortgages and savings accounts 39
… all of which are active in the field of general-purpose personal loans 39
International payments / remittances 41
5.0 CANADA 42
Introduction 42
Consumer finance 43
Provision rates for point-of-sale finance are markedly lower than the average for North and Latin America… 43
… with only six providers found to be active in this sphere 43
Over 2 million customers have acquired financial services from President's Choice Financial 43
Canadian Tire's entire financial services business secures well over CAD 200 million in gross revenues 43
Ranked second in the weighted analysis, Bill Me Later holds key several partnerships with online retailers 44
Speciality retailers feature the highest provision rate for consumer finance 45
Banking products 47
Overview 47
The distribution of mainstream banking products is limited to two major retailer groups… 47
Personal loans, mortgages and savings accounts 47
… albeit these encompass as many as 14 separate brands 47
CIBC benefits from its long-standing relationship with President's Choice Financial 48
International payments / remittances 51
As with mainstream banking products, retailers in the Weston group are active in international payments… 51
…using the Interac e-Transfer service, a relative of Canada's major debit card network 51
Western Union is the other provider used in this field by major retail brands in Canada 51
6.0 CHILE 54
Introduction 54
Consumer finance 54
Provision rates for point-of-sale finance are much lower than those for retailer payment cards… 54
… with the same captive providers used by retailers where both are offered 54
Banco Paris is the leader in terms of both unweighted and weighted share of partnerships 55
Only three categories host any retail brands with involvement in non-card consumer finance 56
Banking products 58
Overview 58
Ten retail brands in Chile offer general-purpose personal loans to their customers… 58
Personal loans, mortgages and savings accounts 58
… with the same captive providers involved as for payment cards and consumer finance 58
International payments / remittances 62
Both MoneyGram and Western Union have signed up major Chilean retailers as distributors 62
Falabella's fast-growing bank provides a basis for cross-selling banking products 65
Financial services account for around 3% of Cencosud group's total revenues... 65
... and also make a very significant contribution to the revenues of the Ripley group 65
7.0 COLOMBIA 66
Introduction 66
Consumer finance 66
A handful of major retail brands in Colombia have established point-of-sale finance schemes... 66
... with a variety of operating models in evidence in this context 67
Only four categories host any retail brands with involvement in non-card consumer finance 68
Banking products 70
Overview 70
Major retailers involved in this field are most likely to offer general-purpose personal loans... 70
Personal loans, mortgages and savings accounts 70
… with captive providers by far the most commonly cited operating model 70
International payments / remittances 73
8.0 COSTA RICA 74
Introduction 74
Consumer finance 74
Grupo Aval's BAC Credomatic is the most visible partner used for retailer consumer finance 74
Banking products 78
Overview 78
Citibank promotes general-purpose personal loans via department store Aliss 78
International payments / remittances 80
9.0 ECUADOR 81
Introduction 81
Consumer finance 81
A number of retailers offer point-of-sale finance through internally-funded schemes 81
Banking products 82
International payments / remittances 82
10.0 MEXICO 84
Introduction 84
Consumer finance 84
Provision rates for point-of-sale finance are above the regional average… 84
… with most retailers relying upon captive partners or internally sourced provision… 84
… while a government-backed finance scheme is also a notable player in this field 85
Banco Walmart is comfortably the most prominent provider of consumer finance in weighted terms 85
Schemes for consumer finance are largely concentrated in two retailer categories 86
Banking products 88
Overview 88
Ten major retail brands in Mexico offer mainstream banking products to their customers… 88
Personal loans, mortgages and savings accounts 88
… with almost all marketing savings accounts but none mortgages 88
Banco Azteca has expanded its distribution reach to more than 1,400 branches since launch… 89
… helping both consumer loans outstanding and pre-tax profits to surge in recent years 89
BanCoppel has also experienced a rapid increase in both its loan book and profitability… 90
… although the progress made by Banco Famsa has been slightly less eye-catching… 90
… and Banco Walmart remains loss-making despite strong growth in consumer loans 90
The four captive banks outgun Banamex in the analyses of provider partnerships 90
International payments / remittances 91
Both MoneyGram and Western Union have signed up important Mexican retailers as distributors… 91
… while two retail brands have established their own services in this domain 92
11.0 PARAGUAY 95
Introduction 95
Consumer finance 95
One in five major retailers in Paraguay offer point-of-sale personal finance to their customers 95
Banking products 96
International payments / remittances 96
12.0 PERU 98
Introduction 98
Consumer finance 98
The popularity of retailer payment cards depresses the need for non-card point-of-sale finance... 98
... which explains why only one external partner is involved in it 98
Banking products 102
Overview 102
Seven retail brands in Peru offer both personal loans and savings accounts to their customers… 102
Personal loans, mortgages and savings accounts 102
… with all seven using captive banks in this context 102
International payments / remittances 105
13.0 URUGUAY 106
Introduction 106
Consumer finance 106
State-owned BROU has a partnership in this field with fuel distributor ANCAP 106
Banking products 107
International payments / remittances 107
14.0 USA 109
Introduction 109
Consumer finance 110
Provision rates for point-of-sale finance are markedly lower those for retailer payment cards… 110
… with PayPal's Bill Me Later service by far the largest provider in this domain… 111
…and with a small number of other finance providers making up the rest of the market 111
Comenity Bank, a major US retail payment card issuer, funds Bill Me Later's consumer lending 111
Ranked second in the weighted analysis, WhyNotLeaseIt holds several important partnerships 112
The consumer electronics sector features the highest provision rate for consumer finance 114
Banking products 116
Overview 116
Over 20 major retailers have an arrangement in the field of international remittances… 116
Personal loans, mortgages and savings accounts 116
… but relatively few distribute mainstream banking products 116
Walmart's Bluebird joint venture with American Express now functions as a deposit-taking bank 117
International payments / remittances 119
Both MoneyGram and Western Union have secured multiple major retail brands as distributors… 119
…while department store Curacao operates its own captive international remittance service 119
15.0 APPENDIX 125
Major captives and joint ventures 125
22 captive or joint venture consumer finance providers are active in North and Latin America… 125
… some of which also offer mainstream banking products 125

View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Veronica

+1 718 514 2762

Purchase Reports From Reputable Market Research Publishers
Online Lending Market Landscape 2016 - Trends, Business Models & Investments in Online Lending Platforms

Online Lending Market Landscape 2016 - Trends, Business Models & Investments in Online Lending Platforms

  • $ 5500
  • Industry report
  • October 2016
  • by Meidata Market Research

The report is based on comprehensive analysis of the main drivers for the growth of the global online lending marketplace through recent years, including P2P lending, crowdfunding & micro-lending services. ...

Retail Banking Country Snapshot: Australia 2016

Retail Banking Country Snapshot: Australia 2016

  • $ 3450
  • Industry report
  • October 2016
  • by Verdict Financial

Summary The Australian financial services market is highly developed, although it is largely dominated by its big four - Commonwealth Bank (CBA), NAB, Westpac, and ANZ, which each own a number of othe ...

Retail Banking Country Snapshot: Mexico 2016

Retail Banking Country Snapshot: Mexico 2016

  • $ 3450
  • Industry report
  • November 2016
  • by Verdict Financial

Summary While the market for current accounts and savings in Mexico is largely controlled by the four largest commercial banks, state-backed lenders dominate the mortgage market. Consumers place a lot ...

Consumer Lending In Poland

November 2016 $ 1910

Consumer Lending In Taiwan

November 2016 $ 1910

Consumer Lending In France

October 2016 $ 1910

Download Unlimited Documents from Trusted Public Sources

Housing Statistics in Austria

  • December 2016
    24 pages
  • Housing  

  • Austria  

    Europe  

View report >

Global Consumer Loan Markets - Forecast

  • November 2016
  • Consumer Loan  

    Mortgage  

  • World  

    China  

    Philippines  

View report >

Consumer Loan Industry in the US

  • November 2016
    21 pages
  • Consumer Loan  

  • United States  

View report >

Related Market Segments :

Consumer Loan

ref:plp2014

Reportlinker.com © Copyright 2016. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.