IIR Q2 2021 Results
South African Consumer Credit Market Emerging for Growth as Credit Health Stabilises
- Delinquencies stabilise across all major consumer credit products, with the exception of unsecured personal loans
- Outstanding balances continue to increase across all major consumer credit products
- Almost a third of South African consumers plan to apply for new credit or refinance in the next 12 months, with personal loans and credit cards topping the list
TransUnion (NYSE: TRU) has released the findings of its Q2 2021 South Africa Industry Insights Report. This latest analysis covers a period where unemployment was still rising but prior to July’s civil unrest and peak in the third wave of COVID-19 cases. The report shows that a number of the trends, seen immediately after the outbreak of COVID-19 more than a year ago, have continued to advance with some notable exceptions, especially when looking at delinquencies.
“Consumer credit market conditions remain volatile and are an evolving picture. Any potential impact from the recent civil unrest and spike in COVID-19 cases won’t be seen until Q3 data are published, but in Q2 there were some noticeable improvements – especially in delinquencies. Whether this improvement can be sustained is yet to be seen and warrants close monitoring in the coming months.”
- Carmen Williams, director of research and consulting for TransUnion South Africa
Q2 2021 Metrics for Major Consumer Credit Products
About the TransUnion IIR Report
TransUnion’s South Africa Industry Insights Report is an in-depth, full population-based solution that provides statistical information every quarter from TransUnion’s national 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. By leveraging the Industry Insights Report, institutions across a variety of industries can analyse market dynamics over an entire business cycle, helping to understand consumer behaviour over time.
Businesses can access more details about and subscribe to the Industry Insights Report. The South Africa Industry Insights Report looks at major consumer lending categories: credit cards, personal loans, home loans, vehicle and asset finance (VAF), and clothing. The report primarily focuses on three dimensions across these categories: originations (new accounts opened), balances (outstanding total and average lending balances) and delinquencies (accounts in payment arears).