$1.6bn
$XXX.Xm
4,501
661
$XXX.Xm
Loan administration, cheque cashing and other services' revenue has been increasing at a CAGR of 2.6% over the past five years, including an estimated 1.2% decrease in 2023, and is expected to total $1.6 billion. In 2023, profit is set to decrease to 14.7%. Canadian consumers' appetite for debt has boosted the industry by sustaining demand for consumer financing, mortgages and cash services for businesses. However, industry profit has trended downward as a result of increased external competition and regulations during most of the period.Canadian GDP growth has largely been driven by trends in consumption. As interest rates have remained low for most of the last five years, Canadians have continued to demand industry products. The ongoing upward trend of household debt-to-income poses a threat to GDP growth. Furthermore, according to a 2018 survey released by MNP LLC (latest data available), one in three Canadians say they are unable to cover monthly bills. This reliance on debt to make monthly payments provides operators with steady demand for their payday loan offerings. But in an environment where most payday loans made are to consumers with a higher probability of default, mounting household debt runs the risk of insolvency and industry contraction.Regulation regarding operators that lend payday loans is also expected to increase, dampening industry profit with this segment. Lastly, increased external competition from commercial banks, credit unions and emerging financial technology companies will likely put downward pressure on industry services such as cheque cashing, money order issuance, travellers' cheque issuance and payday loans. Industry revenue is expected to drop at a CAGR of 1.0% over the next five years, reaching an estimated $1.5 billion in 2028, when profit is projected to drop to 15.4%.
Industry revenue has grown at a CAGR of 2.6 % over the past five years, to reach an estimated $1.6bn in 2023.
Market size is projected to decline over the next five years.
Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
---|---|---|---|---|
National Money Mart Company | 45.1 | N/A | N/A |
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Industry revenue is measured across several distinct product and services lines, including Loan servicing, Cash handling and management services and Other. Loan servicing is the largest segment of the Loan Administration, Cheque Cashing & Other Services in Canada.
New technologies are forcing changes in the cash handling and management services
Operators in the Loan Administration, Cheque Cashing and Other Services industry in Canada service loans, most notably mortgages. It does not originate loans, which includes legally arranging and issuing the loan. Servicing loans includes performing all the administrative aspects of the loan. The industry also performs money transmission services, which include selling and cashing travellers’ cheques, money orders and cashier’s cheques, while also renting safe deposit boxes.
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NAICS 522390 - Loan Administration, Cheque Cashing & Other Services in Canada
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Including values and annual change:
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Key data sources in Canada include:
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The market size of the Loan Administration, Cheque Cashing & Other Services industry in Canada is $1.6bn in 2024.
There are 661 businesses in the Loan Administration, Cheque Cashing & Other Services industry in Canada, which has grown at a CAGR of 0.6 % between 2018 and 2023.
The market size of the Loan Administration, Cheque Cashing & Other Services industry in Canada has been growing at a CAGR of 2.6 % between 2018 and 2023.
Over the next five years, the Loan Administration, Cheque Cashing & Other Services industry in Canada is expected to decline.
The biggest company operating in the Loan Administration, Cheque Cashing & Other Services market in Canada is National Money Mart Company
Loan servicing (primarily mortgages) and Selling money orders and travellers’ cheques are part of the Loan Administration, Cheque Cashing & Other Services industry.
The company holding the most market share in Canada is National Money Mart Company.
The level of competition is high and steady in the Loan Administration, Cheque Cashing & Other Services industry in Canada.