While there has been some asset growth in the sector, margin pressure is continuing and competition with banks remains a major challenge for finance companies.
Overall, the latest Survey reports that New Zealand finance companies and savings institutions have emerged fairly well from the Global Finance Crisis (GFC).
The 23 institutions surveyed have been successful in adapting their business to the post-crisis environment, with the focus having shifted to managing margins and growth in light of a competitive lending environment that is at last starting to show some new opportunities.
Another key finding of the Survey is the challenge of increased regulation in the sector. The Anti-Money Laundering and Countering Financing of Terrorism Act came into full effect on 30 June 2013.