Consumer Finance in Chile
Euromonitor International's Consumer Finance in Chile report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
Buy online to access strategic market analysis and an interactive statistical database of value and volume for retail and internet transactions, number of cards in circulation and company brand shares.
Tables: 94 | Publication date: Feb 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Consumer lending; Financial cards and payments
Executive summary
Rising Incomes and Low-income Consumers Boosting Card Use
Chile continued to see strong growth in card use in 2008, although there was a slight slowdown in growth as the market matured and economic growth slowed. Growth has come increasingly from low-income consumers who previously were beyond the reach of major players in the financial cards industry, but who have become more worthwhile targets in recent years. New programmes from banks and the government, such as the CuentaRUT and Caja Vecina, are creative steps that have been taken to expand the reach of financial cards in the country, which continued to drive strong growth in 2008.
Growing Leisure Spending Opens Card Opportunities
Chileans are changing their spending habits. In 1997, spending on leisure, including restaurants, travel, hotels, entertainment and sports, accounted for 5% of total expenditure. The figure has now reached 7%, and is expected to reach 20% in the next 10 years. Companies have responded to this trend. Santiago has in recent years seen substantial growth in restaurant openings, for instance, and while most of them are targeted at upper income citizens, lower income neighbourhoods have also been affected by this trend. Many card issuers are developing aggressive campaigns to link the use of their cards with this tendency in spending, and Chileans are responding by using their cards more frequently, with spending in this sector seen as aspirational. Growth in foreign travel among Chileans will also boost spending on financial cards abroad.
Retailers Continue to Lead in Card Issuing and Operating
Chile is the only country in the world where major retailers have more credit cards in circulation than banks, largely as a result of their requiring only that a customer can perform a valid bank transaction before issuing a card (thus relying on the creditworthiness checks carried out by banks). Banks are, however, now following leading retailers in serving the unbanked population, but stores have significant competitive advantages through the network of related business they have developed, such as travel agencies and insurance. Major retailers also benefit from greater client knowledge, due to their extensive customer databases. For that reason, although banks will develop strategies to compete with the stores, retailers will continue to lead the credit card sector in the forecast period.
General Purpose Cards to Enter Chile
General purpose pre-paid cards do not currently exist in Chile. This will change in 2009, however, as Visa International has decided to associate with local banks to launch pre-paid cards that can be used in more than 60,000 points of sale in Chile. These cards will be targeted at people that do not qualify for a bank credit card, and represents another effort by the banks to serve the unbanked population. The new cards are expected to be available in highly frequented locations, such as kiosks, restaurants and grocery stores.
Commercial Credit Cards Lead Forecast Growth
The financial cards market generally is forecast to see strong growth over the forecast period. Commercial credit cards have the greatest opportunity for growth, as many small and medium businesses still rely on cheques and personal cards, rather than managing expenses with commercial cards. An increasing focus on this subsector by issuers and operators is expected to yield positive results.
Table of contents
CONSUMER FINANCE IN CHILE : MARKET INSIGHT
EXECUTIVE SUMMARY
Rising Incomes and Low-income Consumers Boosting Card Use
Growing Leisure Spending Opens Card Opportunities
Retailers Continue to Lead in Card Issuing and Operating
General Purpose Cards to Enter Chile
Commercial Credit Cards Lead Forecast Growth
KEY TRENDS AND DEVELOPMENTS
Increasing Focus on Female Consumers
Unbanked Population Drive Led by State Bank
Internet Retailing to Get a Boost
Leisure Takes Off
MARKET DATA
Table 1 Consumer Payments: Value 2003-2008
Table 2 Financial Cards: Number of Cards in Circulation 2003-2008
Table 3 Financial Cards Transactions: Value 2003-2008
Table 4 Financial Cards: Number of Transactions 2003-2008
Table 5 Financial Cards: Number of Accounts 2003-2008
Table 6 Financial Cards: Number of Cards by Issuer 2003-2007
Table 7 Financial Cards: Number of Cards by Operator 2003-2007
Table 8 Financial Cards: Card Payment Transaction Value by Operator 2003-2007
Table 9 Financial Cards: Card Payment Transactions by Acquirer 2003-2007
Table 10 Consumer Payments Forecast: Value 2008-2013
Table 11 Financial Cards Forecast: Number of Cards in Circulation 2008-2013
Table 12 Financial Cards Forecast: Value 2008-2013
Table 13 Financial Cards Forecast: Number of Transactions 2008-2013
Table 14 Financial Cards Forecast: Number of Accounts 2008-2013
MARKET INDICATORS
Table 15 Number of POS Terminals 2004-2008
Table 16 Number of ATMs 2004-2008
Table 17 Disposable Income 2003-2008
Table 18 Value Lost to Fraud 2003-2008
Table 19 Acquirer Fraud 2003-2008
Table 20 Card Expenditure by Location 2008
Table 21 Card Expenditure by Sector 2008
Table 22 Financial Cards in Circulation by Type: % Number of Cards 2004-2008
Table 23 Domestic versus Foreign Spend 2008
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - CHILE
BANCO DE CHILE - FINANCIAL CARDS AND PAYMENTS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Banco de Chile: Key Facts
Summary 3 Banco de Chile: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 4 Banco de Chile: Competitive Position 2007
CENCOSUD SA - FINANCIAL CARDS AND PAYMENTS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Cencosud SA: Key Facts
Summary 6 Cencosud SA: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 7 Cencosud SA: Competitive Position 2007
D&S SA - FINANCIAL CARDS AND PAYMENTS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Distribución y Servicios D&S SA: Key Facts
Summary 9 Distribución y Servicios D&S SA: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
FALABELLA SACI - FINANCIAL CARDS AND PAYMENTS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 10 SACI Falabella: Key Facts
Summary 11 SACI Falabella: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 12 SACI Falabella: Competitive Position 2007
ATM TRANSACTIONS IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 24 ATM Cards Sector Performance: 2003-2008
Table 25 ATM Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 26 ATM Cards Sector Performance: % Growth 2003-2008
Table 27 ATM Cards in Circulation Sector Performance: % Growth 2003-2008
Table 28 ATM Cards Forecast Sector Performance: 2008-2013
Table 29 ATM Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 30 ATM Cards Forecast Sector Performance: % Growth 2008-2013
Table 31 ATM Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
DEBIT TRANSACTIONS IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 32 Debit Cards Sector Performance: 2003-2008
Table 33 Debit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 34 Debit Cards Sector Performance: % Growth 2003-2008
Table 35 Debit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 36 Debit Cards: Number of Cards by Issuer 2003-2007
Table 37 Debit Cards: Number of Cards by Operator 2003-2007
Table 38 Debit Cards Transactions by Acquirer 2003-2007
Table 39 Debit Cards Payment Transaction Value by Operator 2003-2007
Table 40 Debit Cards Forecast Sector Performance: 2008-2013
Table 41 Debit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 42 Debit Cards Forecast Sector Performance: % Growth 2008-2013
Table 43 Debit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CREDIT CARD TRANSACTIONS IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 44 Credit Cards Sector Performance: 2003-2008
Table 45 Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 46 Credit Cards Sector Performance: % Growth 2003-2008
Table 47 Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 48 Personal Credit Cards Sector Performance: 2003-2008
Table 49 Personal Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 50 Personal Credit Cards Sector Performance: % Growth 2003-2008
Table 51 Personal Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 52 Commercial Credit Cards Sector Performance: 2003-2008
Table 53 Commercial Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 54 Commercial Credit Cards Sector Performance: % Growth 2003-2008
Table 55 Commercial Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 56 Credit Cards: Number of Cards by Issuer 2003-2007
Table 57 Credit Cards: Number of Cards by Operator 2003-2007
Table 58 Credit Cards Transactions by Acquirer 2003-2007
Table 59 Credit Cards Payment Transaction Value by Operator 2003-2007
Table 60 Personal Credit Cards Payment Transaction Value by Operator 2003-2007
Table 61 Commercial Credit Cards Payment Transaction Value by Operator 2003-2007
Table 62 Credit Cards Forecast Sector Performance: 2008-2013
Table 63 Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 64 Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 65 Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 66 Personal Credit Cards Forecast Sector Performance: 2008-2013
Table 67 Personal Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 68 Personal Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 69 Personal Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 70 Commercial Credit Cards Forecast Sector Performance: 2008-2013
Table 71 Commercial Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 72 Commercial Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 73 Commercial Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CHARGE CARD TRANSACTIONS IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
GENERAL PURPOSE PRE-PAID CARD TRANSACTIONS IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
STORE CARD TRANSACTIONS IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 74 Store Cards Sector Performance: 2003-2008
Table 75 Store Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 76 Store Cards Sector Performance: % Growth 2003-2008
Table 77 Store Cards in Circulation Sector Performance: % Growth 2003-2008
Table 78 Store Cards: Number of Cards by Issuer 2003-2007
Table 79 Store Cards Forecast Sector Performance: 2008-2013
Table 80 Store Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 81 Store Cards Forecast Sector Performance: % Growth 2008-2013
Table 82 Store Cards in Circulation Forecast Sector Performance: % Growth 2008-2013