Loan Administration, Cheque Cashing & Other Services in Canada - Market Research Report (2013-2028)
New York, United States
Last Updated: October 2023
NAICS 52239CARevenue
$1.6bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
4,501
Businesses
661
Wages
$XXX.Xm
Loan Administration, Cheque Cashing & Other Services in Canada industry analysis
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%.
Trends and Insights
- The Bank of Canada cut rates to near-zero in response to the economic woes caused by the pandemic. But as inflation began reflecting in the economy in 2022, rates began rising. The lower rates incentivized more loan originations but current higher rates are reducing demand, so loan administrators are working with the change in numbers of loans.
- Loan servicing is the bread and butter of the industry. The fluctuation in interest rates in the last few years has created volatility in loan servicing, but loan servicing has increased as a share of revenue in the last few years.
- Ontario is the most populous Canadian province. It contains the highest share of exchange houses of any province.
- Consumers tend to prefer loan servicers knowledgeable of local real estate. This leads to a high number of regional banks and local nonbank servicers specializing in the needs of the community.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 2.6 % over the past five years, to reach an estimated $1.6bn in 2023.
Trends and Insights
Fluctuations in interest rates are creating volatility in lending
- Commercial banks, savings banks and credit unions typically generate loans for consumers and businesses, a process known as loan origination. Many of these institutions frequently prefer to sell their loan portfolios to industry operators rather than service them.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Continued volatility and uncertainty in interest rates will dampen demand for loan servicing
- The Bank of Canada is likely to continue its rate hikes for the next couple of years as inflation fears persist. If the Bank of Canada stops raising rates too soon, hyperinflation might set in, but if they raise rates too high and too fast, the Canadian economy might enter a recession.
Biggest companies in the Loan Administration, Cheque Cashing & Other Services in Canada
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
National Money Mart Company | 45.1 | N/A | N/A |
To view the market share and analysis for all 1 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
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.
Trends and Insights
New technologies are forcing changes in the cash handling and management services
- Account reconciliation, cash collection and armoured car services, balance reporting and closed cash handling are some of the services included in this segment.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Commercial Banking in Canada
- Credit Unions in Canada
Complementors
- Insurance Brokers & Agencies in Canada
- Real Estate Investment Trusts in Canada
- Debt Collection Agencies in Canada
International industries
- Loan Administration, Check Cashing & Other Services in the US
- Pharmacy Benefit Management in the US
- Check Cashing & Payday Loan Services in the US
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Loan servicing (primarily mortgages)Selling money orders and travellers’ chequesCheque cashing servicingMoney transmission servicingSafe deposit box rentingCompanies
National Money Mart CompanyPurchase this report to view all 1 major companies in this industry.
Related Terms
ORIGINATED MORTGAGE SERVICING RIGHTSPURCHASED MORTGAGE SERVICING RIGHTSLOAN SERVICINGMORTGAGE BACKED SECURITY (MBS)PROVISION FOR CREDIT LOSSESCOLLATERALIZED MORTGAGE OBLIGATION (CMO)Industry Code
NAICS 522390 - Loan Administration, Cheque Cashing & Other Services in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The Bank of Canada cut rates to near-zero in response to the economic woes caused by the pandemic. But as inflation began reflecting in the economy in 2022, rates began risin...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Loan servicing is the bread and butter of the industry. The fluctuation in interest rates in the last few years has created volatility in loan servicing, but loan servicing h...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Ontario is the most populous Canadian province. It contains the highest share of exchange houses of any province.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each province in 2023
- Number and share of revenue each province accounts for in 2023
- Number and share of wages each province accounts for in 2023
- Number and share of employees in each province in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Consumers tend to prefer loan servicers knowledgeable of local real estate. This leads to a high number of regional banks and local nonbank servicers specializing in the need...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
There are no major players in the industry. Loan administration in Canada is fragmented and serves local communities, preventing any one company from gaining significant mark...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of National Money Mart Company's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for National Money Mart Company, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Loan administrators are susceptible to changes in interest rates, which are set by the Bank of Canada in response to economic conditions. Uncertainty regarding additional rat...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
External competition has caused services such as cheque cashing, money order issuance and servicing loans originated by others to go down. Loan administrators generally don’t...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Assets (2016-2021)
- Liabilities (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Loan Administration, Cheque Cashing & Other Services industry in Canada in 2024?
The market size of the Loan Administration, Cheque Cashing & Other Services industry in Canada is $1.6bn in 2024.
How many businesses are there in the Loan Administration, Cheque Cashing & Other Services in Canada industry in 2023?
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.
Has the Loan Administration, Cheque Cashing & Other Services industry in Canada grown or declined over the past 5 years?
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.
What is the forecast growth of the Loan Administration, Cheque Cashing & Other Services industry in Canada over the next 5 years?
Over the next five years, the Loan Administration, Cheque Cashing & Other Services industry in Canada is expected to decline.
What are the biggest companies in the Loan Administration, Cheque Cashing & Other Services market in Canada?
The biggest company operating in the Loan Administration, Cheque Cashing & Other Services market in Canada is National Money Mart Company
What does the Loan Administration, Cheque Cashing & Other Services in Canada include?
Loan servicing (primarily mortgages) and Selling money orders and travellers’ cheques are part of the Loan Administration, Cheque Cashing & Other Services industry.
Which companies have the highest market share in the Loan Administration, Cheque Cashing & Other Services in Canada?
The company holding the most market share in Canada is National Money Mart Company.
How competitive is the Loan Administration, Cheque Cashing & Other Services industry in Canada?
The level of competition is high and steady in the Loan Administration, Cheque Cashing & Other Services industry in Canada.
