Earlier this week, I hosted the TransUnion Financial Services’ Industry Insights Report webinar, a quarterly overview of credit trends within the consumer lending industry, covering the entire U.S. credit-active population.
As analysts or business leaders, we’re driven to understand industry activity, which reflects economic fluctuations. To do this, we have to continuously examine what is happening in a consumer’s wallet from a credit trends perspective.
Economics is like being lost in the woods. How can you tell where you are going when you don’t even know where you are?
The report includes analysis of 4 sectors – Credit Card (Bankcard and Private Label card), Auto, Mortgage, and HELOC, as well as aggregate views of all Revolving and all Non-revolving loans.
Throughout the webinar, I highlight the growth in originations, balances, average balance, credit lines, delinquency trends, as well as the connecting business stories we have seen trending across these products. Most importantly, I provide deeper insights to what is driving these trends by credit tier, which allows lenders to be informed of consumer performance at a risk segment level.
For example, this chart examines delinquencies across Card, Mortgage, Auto and HELOC products since 2008. We can see the stability in Card, continuous decline in Mortgage and HELOC, and a slight increase in Auto. It is important to highlight the peaks and lows the industry has observed, in terms of risk performance, when planning for the next few years of economic lifecycle.
A few takeaways I’d like to share with you which my clients seem to find most interesting – Analysis shows the average total revolving debt per consumer has decreased by 22% since post-recession. However, more consumers have access to revolving credit and continue to improve at a 4% year-over-year growth rate since Q1 of 2014. Looking forward, there are robust signs of a healthy credit market. This activity and other data points discussed in the webinar reflect a recovering economy – rich with improved and positive momentum and signs of growth.
For more insights and further explanation, I invite you to view the webinar by following the link below. Over the course of the hour, you’ll glean insights that further validate the changing lending dynamics:
- Share of new accounts shifting towards Non-Prime risk tiers within the Card and Auto industry
- Long-awaited growth in Card balances
- Vintage analysis of delinquency trends within each line of business for originations since 2008
Source: TransUnion Consumer Credit Database