TransUnion Q4 2021 Industry Insights Report

Younger consumers fuelling growth in the Hong Kong credit market

The newly released TransUnion Q4 2021 Industry Insights Report shows the continued recovery of the Hong Kong consumer credit market, mirroring wider improvements in macro-economic indicators. In Q4 2021, unemployment was almost half the rate it was at the same time the year before and private consumption, although still behind pre-pandemic levels of Q4 2019, rose by 7.3% year-on-year (YoY)*.

The report showed an increased appetite for risk and lending to new consumer groups – especially when looking at lending to younger generations. In Q3 2021, for credit cards, the distribution of Gen Z (those born after 1995) consumer originations increased by nine percentage points, up from 12% in Q3 2020 to 21% in Q4 2021.

Personal loans show risk shift as lenders continue to seek growth — the only consumer credit category to record an increase in both originations and outstanding balances in the most recent quarterly data. The growth in outstanding balances (up 1.0% YoY in Q4 2021) in this category was the first since Q4 2019.

The latest report was conducted against a backdrop of an improving economy and low numbers of locally transmitted COVID-19 cases – all of which showed a continuous growth in the consumer credit market in Q4 2021.

As recently the COVID-19 cases have reached historical high and the social distancing measures have further been tightened, there are still many uncertainties in the short term. On the other hand, the Hong Kong Government has announced a new round of consumption e-voucher scheme and more measures to support the public. Stay tuned with TransUnion for the next Industry Insight Report to learn how these will impact the credit market.

Read the full report for more stats, trends and insights that can help drive your lending strategies.

Q4 2021 Metrics for Major Consumer Credit Products in Hong Kong

Source: TransUnion Hong Kong (except for mortgage balance data which is from the Residential Mortgage Survey (December 2021) published by the Hong Kong Monetary Authority)

i. Originations are viewed one quarter in arrears to account for reporting lag.
ii. Serious-delinquency rates are 90 or more days past due for credit cards and 60 or more days past due for all other credit products.
iii. Delinquency data are reported at a balance level except for mortgages, which are reported at an account level.


“Younger generations are increasingly fuelling growth in the Hong Kong consumer credit market and this trend is expected to continue. For many lenders, risk expansion opportunities for new-to-credit consumers or those with very limited credit history is a new frontier and it’s important to leverage enhanced data when developing strategies to support this growing market.”

Marie Claire Lim Moore, Chief Executive Officer, Hong Kong TransUnion

1 Census and Statistics Department of the Hong Kong Special Administrative Region (HKSAR) Government shows Q4 2021 adjusted unemployment rate at 3.9%, down from 6.6% in Q4 2020. Oxford Economics data show a quarterly private consumption annualised growth rate of 7.3% in Q4 2021.

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