2013-09-01 08:24:07 - New Financial Services market report from Datamonitor: "Australian Household Deposit Market: Forecasts and Future Opportunities"
The report analyzes the Australian household deposits market and its constituent parts. It examines how the size of the deposits market has altered and sizes the overall market. Furthermore, it identifies and analyzes five key trends that will affect the market over the coming years. Lastly, it forecasts the value of the deposits market until 2017 using multivariate regression analysis.
Scope of this Report
* Size your potential client base for varying savings products using Datamonitor's deposits forecast model.
* Understand the drivers of retail deposit growth and how these change over time.
* Stay competitive by understanding shifting market dynamics and learning how key trends will affect the market.
Household deposits have been growing steadily over recent years, amounting to
A$632,232m in December 2012. Based on Datamonitor's modeling, approximately 55% of household deposits are kept in savings accounts, 24% in offset accounts, and 21% in transaction accounts.
Full Report Details at
- www.fastmr.com/prod/671067_australian_household_deposit_market_f ..
The trend toward remote channels is set to become even more pronounced, posing an opportunity as well as a challenge for ADIs, and making effective channel management more important than ever. While mobile and online banking has the potential to significantly reduce ADIs' overall costs, it also creates additional churn in the market.
Household deposits are expected to record a CAGR of 8.9% between 2013 and 2017, compared to a CAGR of 10.8% over the past five years. Consequently, competition for deposits will increase, especially as providers are looking to grow their proportion of household deposits to comply with Basel III.
Reasons to Get this Report
Which deposits segments are forecast to grow the fastest in the Australian market?
* What will drive growth over the next five years?
* What are the key trends and developments in the market and how will they affect ADIs over the next five years?
Partial Table of Contents:
Australia's Household Deposit Market
* Deposits are recovering as a source of funding for Australian lenders
* Overall ADI funding has been shifting away from wholesale sources back to traditional deposits
* Covered bond issuances are unlikely to increase significantly, keeping the focus on deposits
* Total household deposits have been growing steadily over the last year
* Steady household deposit growth in recent years has allowed ADIs to recover their funding from households
* Household deposit growth since 2008 has been more consistent than that of other deposit types
* Competitive product pricing has made deposits more attractive to consumers
* Australian banks were able to grow their household deposits steadily in recent years, while the mutual sector struggled
* Household deposits make up the bulk of banks' total deposit mix
* A number of mutuals have become mutual banks, adding another A$11,604m in household deposits to the banking sector
* Mutuals' household deposit growth was dampened by building societies and credit unions converting into mutual banks
* The majority of household deposits are kept in a variety of savings products
* While still niche, notice accounts are set to become more prominent in Australia
* High street banks have been able to attract the bulk of savers' deposits
Key Trends Shaping the Future of the Australian Household Deposit Market
* Effective channel management will have a significant impact on profitability
* Mobile and online banking usage will continue to change the way Australians bank
* Increased usage of mobile and online banking will create additional churn in the market
* Improving economic conditions will favor competing asset classes
* The flight to quality is over, making growth in deposits more of a challenge in the future
* Consumers' changing financial priorities will dampen deposit growth
* Australians' focus on debt and savings, driven by negative global news, is fading
* As economic conditions improve, there will be a shift in consumers' financial priorities
* Despite falling wholesale funding costs, deposits will remain an important source of funding
* Deposits will continue to be important as a source of funding
* Falling wholesale funding costs will not result in a shift in ADIs' funding mix, as competition for deposits is expected to remain fierce
* Regulatory pressure will increase banks' focus on household deposits
* Basel III will force banks to rethink their funding structure
* The effect of the government's tick and flick reforms are expected to be marginal
The Future Decoded
* The overall deposit market is forecast to grow at a lower rate than over the past seven years
* Australia's total deposit market is forecast to be worth A$2,521bn in 2017
* Banks' household deposits are set to record a CAGR of 9.3% over the forecast period
* Mutuals' deposit base is expected to grow at a significantly slower rate than that of banks
* Abbreviations and acronyms
* Supplementary information
* Basel III - further information
* Cash rate
* Measures of growth
Full Table of Contents is available at:
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