2023 TransUnion Hong Kong Financial Services Summit

The global economy is experiencing a sharper-than-expected slowdown amid decade-high inflation, aggressive monetary policies, and geopolitical uncertainties. Lenders are navigating rough waters with strong headwinds and shifting consumer dynamics. This session will explore the fundamentals of how economic drivers impact business issues in Hong Kong with a global view. 

The consumer credit industry in Hong Kong enjoyed a revival due to the relaxed COVID-19 policies and strong economic fundamentals. In this session, we'll evaluate recent trends in credit activity and market sentiments, as well as analyse the impact of the changing risk landscape and discuss the implications for lenders. We'll share insights across the four dimensions of demand, supply, consumer behaviour and performance with a thorough analysis of key lending products.

As part of a global study conducted by TransUnion, we discovered the new-to-credit (NTC) consumer segment offers real growth potential. However, common myths about this underserved cohort must be debunked to help lenders better understand and more confidently transact with them. In this session, we'll highlight the growth potential of NTC consumers and discuss their behavioural and demographic features. By understanding their credit journeys, lenders can better identify segments for acquisition opportunities.  

It's essential to understand the issues and challenges facing MCRA participants in transition to the new credit reporting model. Considerations should also be given to data security and compliance in adapting to the new reality. Furthermore, panellists will discuss how the MCRA might shape the future of the consumer credit industry in Hong Kong.

Small and medium-sized enterprises (SMEs) are vital in the Hong Kong economy. With the economy moving past the pandemic, this segment is expected to rebound and continue contributing to economic recovery. This study will equip lenders with first-hand insights into SMEs while showcasing the power of alternative data in driving profitable growth in this sector.

The youngest credit-active generation — Gen Z — demonstrated a robust appetite for credit prior to the pandemic. As they mature into adulthood, their credit needs are expected to change. Identifying and targeting these consumers with convenient channels and relevant offers is vital to growth. In this session, we'll evaluate their participation and performance in the credit market.

We'll also benchmark Gen Z consumers against Millennials counterparts. Observing their similarities and differentiating trends will help lenders identify growth opportunities. We'll also share TransUnion's perspective on a customer lifecycle approach lenders can adopt for creating opportunities and managing for growth within generations with target-specific growth strategies.

The GBA is one of China's most internationally open regions — it also possesses a vast domestic market in its own right. In the last few years, Guangdong province has introduced various measures to optimise its business environment. As a GBA city near Guangdong, Hong Kong enjoys an unparalleled geographic advantage.

In this session, Tsang will share the HKTDC's research findings on GBA consumer characteristics and identify the financial and risk management services Hong Kong SMEs seek when tapping into the GBA market amid external challenges.