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TransUnion Q3 2022 Industry Insights Report

Rising Consumer Sentiment Helps Revive Consumer Credit Market

The latest Industry Insights Report from TransUnion revealed a sharp revival in economic activity among Hong Kong consumers. This was likely fuelled by a further reduction in COVID-19 restrictions, an improved employment rate, good macroeconomic factors, and phase II of the government’s voucher scheme.

Credit activity in Hong Kong has continued to increase in key product categories, with a marked increase in the origination of loans on card and unsecured revolving lines, and in account balances.

With prime and below segments increasing the most year-over-year (YoY), originations among subprime consumers jumped by 45%, near prime by 15%, and prime by 7% — indicating card issuers’ willingness to take on increased risks for asset growth.

Q3 2022 Report highlights include:

  • Credit card origination volumes fell slightly in Q2 2022 (the latest period for originations due to reporting lag) by -0.8% year-over-year (YoY) compared to Q2 2021.
  • Growth in the unsecured personal loan market started to slow during 2022 with originations only growing marginally by 0.4% YoY in Q2 2022.
  • 41% of consumers considering new credit were planning on new personal loans1

1Q3 2022 TransUnion Consumer Pulse Survey

Q3 2022 Metrics for Major Consumer Credit Products in Hong Kong

Source: TransUnion Hong Kong (except for mortgage data which is from the Residential Mortgage Survey (June 2022) published by the Hong Kong Monetary Authority)

i. 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.
ii. Delinquency data are reported at a balance level except for mortgages and loan on card, which are reported at an account level.

Kevin Chen

“Hong Kong consumers have shown resiliency, a regained interest in credit, and a potential need to leverage credit to cope with the rising cost of living and debt. Lenders should leverage enhanced credit attributes to identify consumers who are likely to be resilient to these pressures and pursue prudent growth with these consumers, and hence gain loyalty.”

Kevin Chen, Principal, Financial Services Research and Consulting, TransUnion Asia Pacific

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