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Report
Q3 2024 Industry Insights
Ease-of-Access, Rewards and Agile Loan Applications Reshape Hong Kong Consumer Wallets
Q3 2024 Report highlights include:
- Hong Kong consumers are expanding their wallets with new payment solutions, driving growth in revolving lines
- Consumers are increasingly capitalising on incentives and rewards
- Stricter underwriting practices have led to a decrease in personal loan originations
With a broader range of banking and other financial tools at their fingertips, Hong Kong consumers now have an even wider choice of payment solutions, empowering them to expand their wallets with digital offerings.
According to the findings of the latest TransUnion Hong Kong’s Industry Insights Report for Q3 2024, consumers are also being further incentivised by rewards and discount vouchers, while digital platforms’ ease of use, broad acceptance for payments, and quick responses to requests for credit are encouraging adoption.
Lenders upheld stricter personal loan underwriting standards in Q2 2024, in response to previous quarters’ deteriorations in delinquency; enquiries increased 3.8% YoY during the quarter, while originations decreased by 4.6%.
Summary of growth in unsecured lending products Q3 2024
*Originations reported one quarter in arrears due to data lag and reflects Q2 2024 volumes. Growth reflects movement between Q2 2023 and Q2 2024 for year-over-year comparison.
“The double-digit increase in demand for credit cards during the second quarter was likely also driven by lenders expanding their rewards offerings to build and retain loyalty and top-of-wallet status. Hong Kong consumers are very strategic in how they leverage their payment options to capture the greatest returns, and they seek reassurance that their financial services providers understand their needs and support their ambitions. These could be for discounts on sought-after items, or rewards that will help them realise their dreamed-of experiences.”
- Weihan Sun, Principal of Research and Consulting for Asia Pacific at TransUnion
About the Hong Kong Industry Insights Report
TransUnion’s quarterly Hong Kong Industry Insights Report provides in-depth, statistical information drawn from its regional consumer credit database, aggregated across virtually every active credit file on record. Each file contains hundreds of credit variables that illustrate consumer credit usage and performance. Entities across industries can subscribe to and leverage the Industry Insights Report to analyse market dynamics throughout an entire business cycle, helping them understand consumer behaviour over time. The report looks at major consumer lending categories: credit cards, loan on cards, personal loans, revolving lines, mortgages, and auto loans, focusing primarily on three dimensions across these categories: originations (new accounts opened), balances (outstanding total and average lending balances) and delinquencies (accounts in payment arears).
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