TransUnion Q4 2023 Industry Insights

Renewed Spending Confidence Drives Growth in Consumer Credit Balances Amidst Surging Retail and Travel Activities


Q4 2023 Report highlights include:

  • Credit card balance growth linked to renewed consumer confidence and spending 
  • Overall personal loan origination volumes decreased but the value of new loans increased
  • Revolving lines continued to grow led by younger consumer demand met by virtual banks 

Over the fourth quarter that included the festive season, credit card balances grew by 12.5% YoY as consumers leveraged their cards for spending activities over the holiday period. Discretionary and retail spending was likely responsible for the majority of consumer credit card use during the period, but the impact of large spending activity relating to travel also contributed.

Personal loan origination (new loans issued that are a reflection of both consumer demand and lender supply) volumes fell by 5.5% YoY in Q3 2023 despite new credit enquiries growing over the same period, reflecting the possibility of lenders taking a more cautious approach in this category.

Heightened demand for revolving lines was driven primarily by Millennial (born 1980-1994) and Gen Z (born 1995-2004) consumers, with virtual banks responding positively, being responsible for 51% of revolving line originations during Q3 2023, up from 46% in Q3 2022. Total origination volumes increased by 49.4% YoY.

Summary of growth in unsecured lending products Q4 2023

Summary of growth in unsecured lending products Q4 2023

*Originations reported one quarter in arrears due to data lag and reflects Q3 2023 volumes. Growth reflects movement between Q3 2022 and Q3 2023 for year-over-year comparison.

Headshot of Weihan Sun

“Given the renewed vigour in consumer spending, and the imminent prospect of interest rate reductions, Hong Kong’s consumer credit market is well positioned for steady expansion. Multi-line lenders can focus on leveraging their existing client base for growth opportunities, while lenders seeking to expand their portfolios of offerings have the opportunity to explore untapped market potential.”

- 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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