Consumer Finance in Norway
Euromonitor International's Consumer Finance in Norway 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: 147 | Publication date: Mar 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
Retail spending buoyant despite higher interest rates
The outlook for the Norwegian economy remains strong, however the boom period characterised by an extraordinarily high peak in 2007 is showing signs of easing. Higher interest rates are impacting the “big ticket” items most sensitive to such increases, for example cars, boats and houses, which are all showing a month-on-month decline in terms of demand. At this stage and in stark contrast, consumer retail spending data for June 2008 showed an increase, most notably in foodstuffs, beverages and clothing. The robust consumer retail spending behaviour comes on the back of several years of high wage growth rates and disposable income levels and it remains to be seen if this trend continues or if Norwegian purse strings will eventually tighten. Despite uncertainty Norway is expected to perform better than most of its Western European counterparts, as its mainstay oil exports continue to prop up the economy.
New consumer finance regulations foster competition
In 2008, Norway’s regulators introduced new inter-bank rules which simplify the process when customers change banks. From May 2008, the old bank will be required to automatically transfer all details including loans, credits and payments to the new bank following authorisation from the customer. The new rules are in light of a growing trend for customers to shop around for the best deal. Data reveals that over the past year 1-in-5 customers either switched or began using a new bank. The two main tools used by banks to entice customers are card loyalty programmes and cheaper fees, which are resulting in expanded and more complex card product offers. To help dissect and highlight the best offers available to bank customers the Norwegian government established an on-line finance portal, finansportalen.no, to coincide with the new inter-bank regulations.
Banks focus on price to stay competitive
The traditional Norwegian banking landscape changed dramatically in the 2000s, amid increased foreign competition and the emergence of on-line banks offering cheaper fees through a lower cost base. Since 2000, 14 new banks have entered the Norwegian market. One on-line bank leading the way through cheaper fees is SkandiaBanken A/S, which offers very competitive card products and is popular with younger people. Indicative of a price competitive market, in April 2008 Norway’s largest bank DnB NOR AS recently cut all fees for the 700,000 members of its customer loyalty programme, at an estimated revenue loss of NKr240 million per annum. This unexpected move was considered necessary in order to retain and attract card loyalty customers, as the competition intensifies.
Credit cards gather momentum
In 2007 and 23008, credit cards registered higher growth rates in terms of new cards issued, transaction volume and value than any other payment card category. This created record transaction value sales and volumes, as many Norwegians increased their frequency of use. As credit cards gather momentum, the competition among card issuers is increasing with some offering free credit card accounts. The Norwegian Financial Services Association reports that the increased competition among card issuers is good news for the customer, as prices are falling. Compared to 2003, Norwegian consumers spend substantially more on their credit cards and international cards are by far the most popular.
Higher card use boosts payment system efficiency
By transaction volume per inhabitant, Norway has the second highest card use in the world behind Iceland, and it has one of the most advanced and efficient payment systems in the world. The Central Bank, which oversees the payment system, reports that Norwegian consumers are increasing their use of payment cards and internet banking year-on-year, and this trend has helped to make the overall payment system more efficient. Despite this, the Governor of Central Bank, Svein Gjedrem, states that the recent trend of banks reducing or not charging for card payment services in the face of increased competition is not necessarily in the customer’s best interest. Gjedrem believes that the loss in revenue poses a risk to the efficiency of the system, as banks are less likely to reinvest in the system.
Table of contents
CONSUMER FINANCE IN NORWAY : MARKET INSIGHT
EXECUTIVE SUMMARY
Retail spending buoyant despite higher interest rates
New consumer finance regulations foster competition
Banks focus on price to stay competitive
Credit cards gather momentum
Higher card use boosts payment system efficiency
KEY TRENDS AND DEVELOPMENTS
Competition set to increase for banks
Payment cards as popular as ever
Younger cardholders’ behaviour offers clue to industry direction
Strong demand for e-commerce related payment applications
M-commerce NFC applications threaten payment cards
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 NORWAY
EXECUTIVE SUMMARY
Overall growth in household credit tapering off
Increased borrowing costs proving too much for some home-owners
Rising debt levels and negative savings growth
Leasing a popular alternative to loans
Looming industry standard lending practices
KEY TRENDS AND DEVELOPMENTS
Growing Household Indebtedness
Number of Non-Performing Consumer Loans Rise
Banks Offering Liberal Mortgage Products To Entice Borrowers
Retail Banks The Largest Lenders
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 - NORWAY
BBS - FINANCIAL CARDS AND PAYMENTS - NORWAY
STRATEGIC DIRECTION
KEY FACTS
Summary 3 BBS: Key Facts
Summary 4 BBS: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 5 BBS: Competitive Position 2008
DNB NOR ASA - FINANCIAL CARDS AND PAYMENTS - NORWAY
STRATEGIC DIRECTION
KEY FACTS
Summary 6 DnB NOR ASA: Key Facts
Summary 7 DnB NOR ASA: Group Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 8 DnB NOR ASA: Competitive Position 2008
LUUP AS - FINANCIAL CARDS AND PAYMENTS - NORWAY
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Luup AS: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
NORDEA BANK AB - FINANCIAL CARDS AND PAYMENTS - NORWAY
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Nordea Bank AB: Key Facts
Summary 11 Nordea Bank ASA: Group Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 12 Nordea Bank AB: Competitive Position 2007
XPONDCARD AS - FINANCIAL CARDS AND PAYMENTS - NORWAY
STRATEGIC DIRECTION
KEY FACTS
Summary 13 XpondCard AS: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
ATM TRANSACTIONS IN NORWAY
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 NORWAY
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 NORWAY
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 NORWAY
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 NORWAY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 115 General Purpose Pre-paid Cards Sector Performance: 2003-2008
Table 116 General Purpose Pre-paid Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 117 General Purpose Pre-paid Cards Sector Performance: % Growth 2003-2008
Table 118 General Purpose Pre-paid Cards in Circulation Sector Performance: % Growth 2003-2008
Table 119 General Purpose Pre-paid Cards by Type: % Number of Cards 2004-2008
Table 120 General Purpose Pre-paid Cards: Number of Cards by Operator 2003-2007
Table 121 General Purpose Pre-paid Cards Transaction Value by Operator 2003-2007
Table 122 General Purpose Pre-paid Cards Forecast Sector Performance: 2008-2013
Table 123 General Purpose Pre-paid Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 124 General Purpose Pre-paid Cards Forecast Sector Performance: % Growth 2008-2013
Table 125 General Purpose Pre-paid Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
STORE CARD TRANSACTIONS IN NORWAY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 126 Store Cards Sector Performance: 2003-2008
Table 127 Store Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 128 Store Cards Sector Performance: % Growth 2003-2008
Table 129 Store Cards in Circulation Sector Performance: % Growth 2003-2008
Table 130 Store Cards: Number of Cards by Issuer 2003-2007
Table 131 Store Cards Forecast Sector Performance: 2008-2013
Table 132 Store Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 133 Store Cards Forecast Sector Performance: % Growth 2008-2013
Table 134 Store Cards in Circulation Forecast Sector Performance: % Growth 2008-2013