Consumer Finance in Hong Kong, China
Euromonitor International's Consumer Finance in Hong Kong, China 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: 138 | Publication date: Jun 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
Operators focus on boosting per capita card usage in mature environment
Due to the highly mature nature of the market, in 2008 financial cards players in Hong Kong continued to focus more on increasing existing card usage than on issuing new cards to new customers. Towards the end of the review period, banks invested in educational programs aimed at elderly citizens and other consumer groups that are still uncomfortable using ATM cards or prefer to visit retail banking outlets to make withdrawals and payments. By 2008, all credit card operators had embraced the Automatic Add Value Service (AAVS) offered by Octopus Cards Ltd, which helped them to increase card usage and boost current value transactions. Octopus also expanded its electronic payments network to incorporate a wider range of retailers and services in Hong Kong (and some retailers in southern China) and thereby encourage greater card usage. Octopus also developed more non-payment applications for its pre-paid cards in an effort to increase usage.
Strong economic growth and rising living costs underpin market development
During the review period, a booming economy brought increased prosperity to much of Hong Kong’s population, boosting purchasing power and consumer confidence. This also fuelled an overall rise in living costs in Hong Kong. In 2008, this combination of a strong economy and rising living costs continued to underpin robust growth in card numbers, current value transactions and the average spend per transaction across all financial card sectors.
Cross-border financial card services with China become more important
China’s influence on Hong Kong’s financial cards market is increasing all the time. It is now imperative for financial cards players to consider both the needs of Hong Kong consumers travelling to China and the needs of Chinese visitors to Hong Kong. In 2008, an increasing number of banks provided a wide range of cross-border services, while nine Hong Kong-based banks offered RMB denominated credit cards. Towards the end of the review period, pre-paid card operator Octopus signed a memorandum of understanding with China UnionPay, and subsequently expanded its merchant acceptance network to incorporate retailers in Shenzhen, southern China. EPS Co (HK) Ltd meanwhile expanded its Easy Pay System (EPS) secure network to allow Chinese visitors to Hong Kong to make payments via China UnionPay.
Large Conglomerates continue to dominate
Large conglomerates remained firmly in control of Hong Kong’s financial cards market throughout the review period. In 2007, HSBC Holdings Plc, Standard Chartered Bank Plc and Hang Seng Bank Ltd were responsible for issuing almost 50% of the total number of credit cards in circulation. Debit cards, charge cards and store cards were similarly concentrated, with just two or three players accounting for the vast majority of cards in circulation. Octopus Holdings Ltd dominated pre-paid cards, while the only other provider of an electronic retail payment network service was EPS Co (HK) Ltd. Due to the concentrated nature of these sectors and the considerable maturity of financial cards as a whole, it is very difficult for new players offering competing services to gain entry into the market.
New applications and premium cards may help to offset market maturity
Over the forecast period, further market development in Hong Kong is likely to be fuelled as operators broaden the range of applications for financial cards, tap into new niche areas and increase their focus on China. Octopus for example will continue to try and boost card usage by increasing merchant acceptance of its pre-paid cards in both Hong Kong and China, while also developing a wider range of non-payment applications. Leading banks meanwhile will attempt to overcome increasing maturity and saturation by targeting new premium credit cards at Hong Kong’s growing base of wealthy consumers.
Table of contents
CONSUMER FINANCE IN HONG KONG, CHINA : MARKET INSIGHT
EXECUTIVE SUMMARY
Operators focus on boosting per capita card usage in mature environment
Strong economic growth and rising living costs underpin market development
Cross-border financial card services with China become more important
Large Conglomerates continue to dominate
New applications and premium cards may help to offset market maturity
KEY TRENDS AND DEVELOPMENTS
Mature market environment presents challenges for leading players
Hong Kong is becoming an increasingly cashless society
Premium credit cards aimed at small but growing base of wealthier consumers
Cross-border services with China integral to Hong Kong market development
Growing use of octopus cards presents opportunity for credit card issuers
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
CONSUMER LENDING IN HONG KONG, CHINA
EXECUTIVE SUMMARY
Strong economy fuels growth
Card lending remains largest category and highly competitive
Medium-sized players innovate in other personal lending
HSBC Group remains the dominant player
Card lending prospects remain bright; property plagued by uncertainty
KEY TRENDS AND DEVELOPMENTS
Past property collapse haunts home buyers
Developed Hong Kong market pushes growth in new directions
Intense competition in other personal lending leads to more target-specific loans
Widening wealth
Credit card issuers tapping into rising Octopus card potential
MARKET DATA
Table 24 Consumer Lending By Sector: Outstanding Balance: Value 2003-2008
Table 25 Consumer Lending By Sector: Outstanding Balance: % Value Growth 2003-2008
Table 26 Consumer Lending By Sector: Gross Lending: Value 2003-2008
Table 27 Consumer Lending By Sector: Gross Lending: % Value Growth 2003-2008
Table 28 Consumer Lending: Non-performing vs Other Loans 2003-2008
Table 29 Mortgages/Housing: Non-performing vs Other Loans 2003-2008
Table 30 Consumer Credit: Non-performing vs Other Loans 2003-2008
Table 31 Forecast Consumer Lending By Sector: Outstanding Balance: Value 2008-2013
Table 32 Forecast Consumer Lending By Sector: Outstanding Balance: % Value Growth 2008-2013
Table 33 Forecast Consumer Lending By Sector: Gross Lending: Value 2008-2013
Table 34 Forecast Consumer Lending By Sector: Gross Lending: % Value Growth 2008-2013
DEFINITIONS
Summary 2 Research Sources
LOCAL COMPANY PROFILES - HONG KONG, CHINA
BANK OF EAST ASIA LTD - FINANCIAL CARDS AND PAYMENTS - HONG KONG, CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Bank of East Asia Ltd: Key Facts
Summary 4 Bank of East Asia Ltd: Operational Indicators 2005-2007
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 5 Bank of East Asia Ltd: Competitive Position 2007
BOC HONG KONG (HOLDINGS) LTD - FINANCIAL CARDS AND PAYMENTS - HONG KONG, CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 BOC Hong Kong (Holdings) Ltd: Key Facts
Summary 7 BOC Hong Kong (Holdings) Ltd: Operational Indicators 2005-2007
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 8 BOC Hong Kong (Holdings) Ltd: Competitive Position 2007
EPS CO (HK) LTD - CONSUMER FINANCE - HONG KONG, CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 EPS Co (HK) Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 10 EPS Co (HK) Ltd: Competitive Position 2007
HANG SENG BANK LTD - FINANCIAL CARDS AND PAYMENTS - HONG KONG, CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Hang Seng Bank Ltd: Key Facts
Summary 12 Hang Seng Bank Ltd: Operational Indicators 2005-2007
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 13 Hang Seng Bank Ltd: Competitive Position 2007
OCTOPUS CARDS LTD - FINANCIAL CARDS AND PAYMENTS - HONG KONG, CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Octopus Cards Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 15 Octopus Cards Ltd: Competitive Position 2007
ATM TRANSACTIONS IN HONG KONG, CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 35 ATM Cards Sector Performance: 2003-2008
Table 36 ATM Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 37 ATM Cards Sector Performance: % Growth 2003-2008
Table 38 ATM Cards in Circulation Sector Performance: % Growth 2003-2008
Table 39 ATM Cards Forecast Sector Performance: 2008-2013
Table 40 ATM Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 41 ATM Cards Forecast Sector Performance: % Growth 2008-2013
Table 42 ATM Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
DEBIT TRANSACTIONS IN HONG KONG, CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Debit Cards Sector Performance: 2003-2008
Table 44 Debit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 45 Debit Cards Sector Performance: % Growth 2003-2008
Table 46 Debit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 47 Debit Cards: Number of Cards by Issuer 2003-2007
Table 48 Debit Cards: Number of Cards by Operator 2003-2007
Table 49 Debit Cards Transactions by Acquirer 2003-2007
Table 50 Debit Cards Payment Transaction Value by Operator 2003-2007
Table 51 Debit Cards Forecast Sector Performance: 2008-2013
Table 52 Debit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 53 Debit Cards Forecast Sector Performance: % Growth 2008-2013
Table 54 Debit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CREDIT CARD TRANSACTIONS IN HONG KONG, CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 55 Credit Cards Sector Performance: 2003-2008
Table 56 Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 57 Credit Cards Sector Performance: % Growth 2003-2008
Table 58 Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 59 Personal Credit Cards Sector Performance: 2003-2008
Table 60 Personal Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 61 Personal Credit Cards Sector Performance: % Growth 2003-2008
Table 62 Personal Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 63 Commercial Credit Cards Sector Performance: 2003-2008
Table 64 Commercial Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 65 Commercial Credit Cards Sector Performance: % Growth 2003-2008
Table 66 Commercial Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 67 Credit Cards: Number of Cards by Issuer 2003-2007
Table 68 Credit Cards: Number of Cards by Operator 2003-2007
Table 69 Credit Cards Transactions by Acquirer 2003-2007
Table 70 Credit Cards Payment Transaction Value by Operator 2003-2007
Table 71 Personal Credit Cards Payment Transaction Value by Operator 2003-2007
Table 72 Commercial Credit Cards Payment Transaction Value by Operator 2003-2007
Table 73 Credit Cards Forecast Sector Performance: 2008-2013
Table 74 Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 75 Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 76 Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 77 Personal Credit Cards Forecast Sector Performance: 2008-2013
Table 78 Personal Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 79 Personal Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 80 Personal Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 81 Commercial Credit Cards Forecast Sector Performance: 2008-2013
Table 82 Commercial Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 83 Commercial Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 84 Commercial Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CHARGE CARD TRANSACTIONS IN HONG KONG, CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 85 Charge Cards Sector Performance: 2003-2008
Table 86 Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 87 Charge Cards Sector Performance: % Growth 2003-2008
Table 88 Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 89 Personal Charge Cards Sector Performance: 2003-2008
Table 90 Personal Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 91 Personal Charge Cards Sector Performance: % Growth 2003-2008
Table 92 Personal Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 93 Commercial Charge Cards Sector Performance: 2003-2008
Table 94 Commercial Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 95 Commercial Charge Cards Sector Performance: % Growth 2003-2008
Table 96 Commercial Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 97 Charge Cards: Number of Cards by Issuer 2003-2007
Table 98 Charge Cards: Number of Cards by Operator 2003-2007
Table 99 Charge Cards Transactions by Acquirer 2003-2007
Table 100 Charge Cards Payment Transaction Value by Operator 2003-2007
Table 101 Personal Charge Cards Transaction Value by Operator 2003-2007
Table 102 Commercial Charge Cards Payment Transaction Value by Operator 2003-2007
Table 103 Charge Cards Forecast Sector Performance: 2008-2013
Table 104 Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 105 Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 106 Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 107 Personal Charge Cards Forecast Sector Performance: 2008-2013
Table 108 Personal Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 109 Personal Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 110 Personal Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 111 Commercial Charge Cards Forecast Sector Performance: 2008-2013
Table 112 Commercial Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 113 Commercial Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 114 Commercial Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
GENERAL PURPOSE PRE-PAID CARD TRANSACTIONS IN HONG KONG, CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
STORE CARD TRANSACTIONS IN HONG KONG, CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 115 Store Cards Sector Performance: 2003-2008
Table 116 Store Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 117 Store Cards Sector Performance: % Growth 2003-2008
Table 118 Store Cards in Circulation Sector Performance: % Growth 2003-2008
Table 119 Store Cards: Number of Cards by Issuer 2003-2007
Table 120 Store Cards Forecast Sector Performance: 2008-2013
Table 121 Store Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 122 Store Cards Forecast Sector Performance: % Growth 2008-2013
Table 123 Store Cards in Circulation Forecast Sector Performance: % Growth 2008-2013