IIR Q1 2019 Results
Overall Consumer Debt Balances Continue to Increase as Demand for Credit Remains High
Lenders show caution against backdrop of challenging economic conditions
TransUnion’s Industry Insights Report found that unsecured credit products, including credit cards and personal loans, which are typically used to fund household expenses and smaller ticket purchases, saw significant YoY growth in outstanding balances in Q1 2019. Credit card balances grew 6.6% YoY, while bank personal loans and non-bank personal loans saw 7.2% and 11.4% YoY increases, respectively.
Credit cards and non-bank personal loans saw a large increase in the number of open accounts, up 8.4% YoY for credit cards and 15.8% for non-bank personal loans. Meanwhile, bank personal loans saw a jump in originations growth in Q1 2019, up 11.3% compared to the prior year quarter. These growth trends indicate that consumers are actively seeking new credit as a means to supplement their incomes and meet their obligations.
“Consumers and lenders alike are wrestling with the continued volatile economic conditions. In these difficult economic times, credit can be a critical lifeline for consumers who may be struggling with their expenses. For lenders, it is important that they continue to make credit available to consumers who may need it, but equally important that they are making prudent lending decisions and manage the risks of their own credit portfolios.”
- Carmen Williams, Director of Research and Consulting
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).