, Hong Kong
Photo by Stephen Phillips via Unsplash

Hong Kongers used credit cards more on average in Q3: study

Card origination volumes contracted, but average card limits are higher.

More Hong Kongers used their credit cards in the third quarter of 2023, according to data from consumer credit insights company TransUnion.

Average consumer credit card utilisation rose across all risk tiers during the quarter, compared to the same period in 2022. At the same time, the number of new-to-credit consumers in the city rose by 32% year-on-year (YoY). This is reportedly the most significant.

“The substantial card balance growth has been driven by increased spending capacity, well supported by limit increases on new and existing cards issued over the past quarter,” said Weihan Sun, principal of Research and Consulting for Asia Pacific at TransUnion. 

“Lenders seeking further confident growth opportunities could consider the untapped potential of new-to-credit consumers, consisting of younger consumers coming of age and consumers who are new to the Hong Kong region, particularly as companies are increasing their efforts to attract international talent in a post-COVID-19 environment,” Sun added.

ALSO READ: Tokyo seeks “friendliest city” title for local, foreign startups

Whilst credit card origination volumes– a measure of new accounts opened– fell by 12.2% YoY, the average limit issued for new cards in the second quarter of 2023 was 10.1% higher than the past year. This reflects rising spend patterns, the study noted.

This increase is also reflected in existing cards. Outstanding balances rose by 15,9% YoY in Q3, and average balances per consumer jumped by 14% YoY. Total credit limit on existing cards rose by 2.7% over the same period.

This increased utilisation and higher card balances were likely driven by higher levels of retail spending. 

ALSO READ: HSBC SG's Tancy Tan on balancing risk and innovation in AI adoption

This is reflected by the higher retail sales in Hong Kong. The value of retail sales rose 13.7% YoY in August, and by 19.3% in the first nine months of 2023 compared to the same period in 2022. 

Other contributing factors to the increased card utilisation may be enhanced cash-back reward programmes offered by lenders seeking to capitalise on the retail resurgence. Whilst those campaigns came to an end during Q3 2023, more are likely to follow during the upcoming festive season, TransUnion said in its report.

Pembekuan pendanaan menghantam penyedia layanan BNPL

Investor semakin sedikit mengalirkan dana ke penyedia layanan BNPL yang sudah menghadapi keuntungan margin yang tipis.

HSBC: Aliansi bank-fintech merupakan win-win

Pemberi pinjaman dapat belajar dari teknologi disruptif sambil membantu mereka mematuhi regulasi.

Tokenisasi aset perdagangan untuk menjembatani kesenjangan pembiayaan

Teknologi blockchain dapat mendesentralisasikan operasi keuangan dan mempermudah akses kredit.

BCA menjalankan komitmen terhadap keuangan berkelanjutan

Bank asal Indonesia ini mempertimbangkan aspek lingkungan dan tata kelola dalam keputusan pemberian pinjaman.

Mengapa UNOBank mendorong embedded finance tumbuh di Filipina

Bagi UNOBank, banking interface terpadu adalah strategi pertumbuhan sekaligus upaya inklusi keuangan.

OCBC mencoba mengurangi kesenjangan manfaat bagi agen properti di Singapura

Produk terbarunya menawarkan manfaat finansial di bidang perbankan, asuransi, dan perdagangan.

Upaya Malaysia menjadi anggota BRICS untuk mendorong perombakan sistem perbankan

Namun, tantangan muncul ketika menjauh dari ketergantungan pada AS dan SWIFT.

Platform pembayaran PingPong memperoleh lisensi PJP di Indonesia

PingPong mengincar ekspansi ke pasar ekspor senilai $320 miliar di negara tersebut.

Merger dan penutupan mengancam 3.800 bank di area pedesaan Cina

Sekitar 70 bank di area tersebut telah merger sejak 2023.