IIR Q3 2021 Results
South Africa Consumer Credit Market Heating up as Younger Generations Show Increased Participation
- Strong growth in new account openings (originations) recorded across all major categories, with the exception of credit cards
- Younger generations featured more heavily in new account openings, having displayed significant declines in the early pandemic phase
- Delinquencies showed a deterioration across all major unsecured lending categories as consumers continued to exhibit the strain of the pandemic on household finances
TransUnion released the findings of its Q3 2021 South Africa Industry Insights Report. With unemployment still at record levels, and consumer price inflation above average household income growth*, the pressure on South African finances remains and is clear to see in the latest consumer credit data. The report shows a number of emerging trends that highlight differences in credit behaviours by consumer generations as well as divergent performance across product categories.
“The volatility in the consumer credit market created by COVID-19 persists, and with low vaccine take-up and new variants in the population, this uneven recovery is likely to continue. There are some positive indicators, especially when looking at originations, but the return to a truly growing, efficiently functioning credit market will be difficult to navigate for consumers and lenders alike.”
- Lee Naik, CEO of TransUnion Africa
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 arrears).