Executive Summary

Oct 2019
Technological, demographic and cultural developments shaping consumer lending

The development of consumer lending in Japan continues to be constrained by the traditionally negative image of debt in the country and the fact that it remains a cash-heavy society. However, Japan is also a society undergoing significant technological, demographic and cultural transition, which is having a positive impact on some areas of consumer lending, most notably credit cards, while also undermining demand in categories such as auto lending.

Government looks to reduce blow of tax rise with rebate for cashless payment

The long-delayed increase in consumption tax was finally implemented in October 2019, with the sales tax rate rising from 8% to 10%. This was the first rise in the tax for five years.

Demographic developments influencing consumer lending

Demographic factors are exerting a growing influence on the development of consumer lending in Japan. The growing number of elderly citizens and the decline in the younger population are leading to a contraction of the labour force, which the Japanese Government is seeking to address partly by encouraging women to enter paid employment.

Negative interest policy weakens mortgages

In 2019, the Bank of Japan maintained the negative interest strategy it introduced in 2016 primarily in order to prevent a spike in the yen having a negative impact on an economy that relies heavily on exports. The Bank of Japan has employed a tiered system, charging 0.

Continued growth to be led by card lending

The forecast period is set to see continued growth in consumer lending, with most categories seeing increases in terms of both outstanding balance and gross lending. Card lending is set to be the most dynamic area, as the drive towards cashless payment and the rise of digital payment technologies enable credit cards to become more deeply embedded in consumers’ everyday lives.

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Consumer Lending in Japan

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Overview

Discover the latest market trends and uncover sources of future market growth for the Consumer Lending industry in Japan with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Consumer Lending industry in Japan, our research will save you time and money while empowering you to make informed, profitable decisions.

The Consumer Lending in Japan market research report includes:

  • Analysis of key supply-side and demand trends
  • Historic volumes and values
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Consumer Lending in Japan?
  • What are the major trends set to impact the market in Japan?
  • What capacity for consumer debt still exists in the market?
  • What’s the state of credit quality in the market?
  • Has the economic downturn reset the lender competitive landscape?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

Euromonitor’s industry reports, including Consumer Lending in Japan, originate from our database within our Consumer Finance market share and market size database, Passport, a platform which analyses Consumer Finance in 46 countries and globally.

Consumer Lending in Japan - Industry Overview

EXECUTIVE SUMMARY

Technological, demographic and cultural developments shaping consumer lending
Government looks to reduce blow of tax rise with rebate for cashless payment
Demographic developments influencing consumer lending
Negative interest policy weakens mortgages
Continued growth to be led by card lending

MARKET DATA

Table 1 Consumer Lending: Outstanding Balance by Category: Value 2014-2019
Table 2 Consumer Lending: Outstanding Balance by Category: % Value Growth 2014-2019
Table 3 Consumer Lending: Gross Lending by Category: Value 2014-2019
Table 4 Consumer Lending: Gross Lending by Category: % Value Growth 2014-2019
Table 5 Consumer Lending: Non-performing vs Other Loans Outstanding Balance: % Value 2014-2019
Table 6 Mortgages/Housing: Non-performing vs Other Loans Outstanding Balance: % Value 2014-2019
Table 7 Consumer Credit: Non-performing vs Other Loans Outstanding Balance: % Value 2014-2019
Table 8 Card Lending: Non-performing vs Other Loans Outstanding Balance: % Value 2014-2019
Table 9 Forecast Consumer Lending: Outstanding Balance by Category: Value 2019-2024
Table 10 Forecast Consumer Lending: Outstanding Balance by Category: % Value Growth 2019-2024
Table 11 Forecast Consumer Lending: Gross Lending by Category: Value 2019-2024
Table 12 Forecast Consumer Lending: Gross Lending by Category: % Value Growth 2019-2024

SOURCES

Summary 1 Research Sources

Consumer Credit in Japan - Category analysis

HEADLINES

PROSPECTS

Card lending to see strong growth
Faltering scheme to fill empty homes has potential to boost home lending
Sharing economy undermines demand for auto lending

COMPETITIVE LANDSCAPE

Banks continue to focus on card lending, though with a more restrictive approach
Falling family incomes lead to higher education lending despite fall in population of 18 year-olds
Specialists work to acquire new customers in increasingly competitive environment

CATEGORY DATA

Table 13 Consumer Credit: Outstanding Balance by Category: Value 2014-2019
Table 14 Consumer Credit: Outstanding Balance by Category: % Value Growth 2014-2019
Table 15 Consumer Credit: Gross Lending by Category: Value 2014-2019
Table 16 Consumer Credit: Gross Lending by Category: % Value Growth 2014-2019
Table 17 Forecast Consumer Credit: Outstanding Balance by Category: Value 2019-2024
Table 18 Forecast Consumer Credit: Outstanding Balance by Category: % Value Growth 2019-2024
Table 19 Forecast Consumer Credit: Gross Lending by Category: Value 2019-2024
Table 20 Forecast Consumer Credit: Gross Lending by Category: % Value Growth 2019-2024