Report
Q3 2025 Industry Insights
Hong Kong Consumer Credit Cools Amid Mixed Economic Indicators
Q3 2025 Report highlights include:
- New card openings remained low, primarily amongst younger consumers, as labour market challenges persist
- Personal loans sustained positive growth activity for the third consecutive quarter, primarily led by digitally native borrowers
Credit card originations among Gen Z1 consumers – who have for years seen significant YoY card growth as their over-18 population numbers increased – decreased by 11.1% YoY. This cooling in the Hong Kong credit card market has likely been influenced by the unemployment rate being at its highest level since August 2022, at 3.9%2 in Q3 2025, with the labour market affected by economic restructuring and weaker hiring in the construction, finance and social sectors. Graduates entering the market have been the most affected, with 8% of young consumers aged 20 to 29 unemployed – the highest level this year, on an upward trend from 5.4% in January 20253.
Lenders have expanded personal loan originations for three consecutive quarters, with younger borrowers driving higher activity. Total personal loan originations increased by 1.2% YoY in Q2 2025, with the average new loan value remaining steady. Personal loan originations from digital banks grew by 35.0% YoY, albeit off a small base. Digital banks accounted for 7.7% of personal loan originations during the quarter, up from 5.8% one year ago.
Summary of growth in unsecured lending products Q3 2025
*Originations are reported one quarter in arrears due to data lag and reflect Q2 2025 volumes. The YoY change in originations reflects movement between Q2 2024 and Q2 2025.
Source: TransUnion Credit Information Services consumer credit database
“Younger consumers are showing more interest in personal loans as their preferred product for addressing short-term credit needs for larger purchases, such as new appliances, or even for home improvements as Hong Kong’s property market becomes more accessible. Digital banks are responding to this demand, with their streamlined digital experiences addressing young consumers’ needs and preferences.”
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).
1 Generations are defined as follows: Gen Z, born 1995–2004; Millennials, born 1980–1994; Gen X, born 1965–1979; and Baby Boomers, born 1944–1964
2 Census and Statistics Department: Unemployment and underemployment statistics for July – September 2025
3 Trading Economics: Hong Kong Youth Unemployment Rate
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