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Household financing involves borrowing money to meet household needs such as home, repairs, and maintenance. Household finance, also known as consumer finance, is increasingly used for home purchase, land purchase, and repair & improvement. Furthermore, household finance provides a variety of repayment options such as standard annual payments, monthly payments, and one-time payments. Moreover, transactions in household finance are scrutinized & underwritten by the respective country national housing bank, which is an apex-level institution established by the parliament to promote and protect the rights of housing loan.
The major companies profiled in the household finances market include UBS, Morgan Stanley, Bank of America Corporation., JPMorgan Chase & Co, Goldman Sachs, Royal Bank of Canada, Charles Schwab & Co, Citigroup Inc., Julius Baer Group, and CREDIT SUISSE GROUP. The players have adopted various strategies including new product launches, collaborations, partnerships, mergers & acquisitions, joint ventures, agreements, and others to gain a stronghold and international presence across the world.
The household finances market share is segmented based on type, interest rate, provider, and region. Based on type, the market is bifurcated into home purchase, land purchase, construction, and others. By interest rate, it is categorized into fixed rate and floating rate. Based on provider, it is classified into public & private bank, non-banking financial institution, and housing finance companies. Based on region, the market is analyzed across Europe, Asia-Pacific, North America, and LAMEA.
Top Impacting Factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis
Technological advancements in home loans and transparency in tracking systems propel the market growth. However, higher default risk in loan repayment is expected to hamper the growth of the market. Contrarily, rise in adoption of artificial intelligence and machine learning can be witnessed as an opportunity for the household finances market.
The household finances market trends are as follows:
Technological advancements in home loans
Rise in the number of tech-savvy homeowners and increased adoption of digitalization among competitors in the household finance to provide better customer services propel the market growth. Furthermore, the usage of digitization aids in the optimization of a company's performance by reducing time spent on repetitive tasks. Moreover, lenders are increasingly relying on data and technology solutions to keep updated with market trends. Furthermore, the loan process across several lenders has been digitalized, as it helps with the easy accessibility of the loan process. Artificial intelligence provides personalized service and assists the customer in the selection of better loan options based on their requirements. As a result, technological advancements are propelling the market growth.
Higher default risk in loan repayment:
Household loans involve easier application process and are generally approved by banks and non-banking financial institutions. However, during the global pandemic situation, households finance suffered huge losses due to unemployment, reduced hours, or pay cuts. Furthermore, households were financially vulnerable before the COVID-19 pandemic and their situation has worsened during the pandemic. Therefore, during such situation, the borrowers must grant permission for the property to be taken over in the event of non-payment of the loan amount. As a result, higher default risk in household loans will slow down the growth of the household finances market during the forecast period.
COVID-19 Impact Analysis
Key Benefits of the Report
Questions Answered in the Research Report
Key Market Segments
Key Market Players