Credit card new accounts volume up 26% in Q2
Credit cards recorded a year-on-year increase in outstanding balances, the first since Q4 2019.
Hong Kong saw a 26% year-on-year increase in credit card new accounts volume in the second quarter (Q2) of 2021, according to the TransUnion Q2 2021 Industry Insights Report.
TransUnion also released findings from research presented at its recent Financial Services Summit that showed the shifting dynamics of consumer loyalty in the credit card market and the behaviours of loan on card consumers. These actionable insights aim to help guide lenders and assist them in making informed lending and account management decisions for business growth and better service.
Hong Kong consumers continued to demonstrate their ability to manage their credit responsibilities well, with improvements in delinquency rates recorded across all the major consumer credit categories. This trend applies to unsecured personal loans, unsecured revolving lines and credit cards, which recorded YoY improvements of 25, 18 and 11 basis points (bps), respectively.
“Increased consumer consumption provided the fuel for a recovery in the consumer credit market and the wider economy. Credit cards are the most widely held consumer credit product in Hong Kong. In Q2 2021 we witnessed an important milestone, with growth in outstanding card balances starting to reverse some of the impacts of the pandemic,” said TransUnion CEO Marie Claire Lim Moore. “It is likely originations and balance growth will continue on a positive though bumpy trajectory as Hong Kong continues to chart its path to recovery.”