The Q2 2021 data is out, and it points to a strong recovery for the financial services industry, according to the TransUnion Q2 2021 Quarterly Credit Industry Insights Report (CIIR).
As we hit the mid-point of 2021, we saw a resurgence across all sectors, with auto, credit card, personal loan and mortgage showing signs of life. Financial institutions are returning to lending and extending credit, and originations were up in both mortgage and auto, with personal and credit card narrowing the gap.
On the road to recovery
TransUnion has expanded our traditional CIIR and we’re now providing the Credit Industry Indicator (CII), which offers new insights on credit activity and the financial performance of US consumers.
How it works: The indicator aggregates consumer credit data to show the impact of economic and market events on consumer credit health. Data elements are summarized on a quarterly basis to analyze changes in credit health and are categorized under four pillars: demand, supply, consumer behavior and performance. These are combined into a single, comprehensive measure that reflects the current state of consumer credit health.
The latest CII shows measured improvement and increased lender confidence, with the indicator most recently reaching a high of 128 in Q2 2021, up from 87 in Q2 2020. This significant jump demonstrates that consumers are rebounding from the pandemic and surpasses the 127 CII observed pre-pandemic in Q1 2020.
“The latest CII indicates that we are well on the road to recovery, and we expect CII levels to continue to grow over the course of the year, so long as COVID cases drop, reopening plans continue and consumer spending levels remain robust,” said Matt Komos, Vice President of research and consulting.