Every quarter TransUnion releases its Credit Industry Insights Report. Their latest issue, released earlier this month, has some very interesting data.
Tony Zerucha shared some key takeaways from the report, leading off with the $995 billion in total card balances at the end of Q3, up 15% year over year.
With the recent resumption of student loan repayments, TransUnion found that nearly half of consumers have no excess capacity when it comes to making new payments. And with the Biden Administration mandating student loan delinquencies go unreported for a year, it could be a tough environment for those lenders in 2024.
It was a little surprising to see unsecured personal loan balances up 15% year over year as most fintech lenders I speak with have pulled back considerably. The number was driven higher by super-prime borrowers at banks.
Fintech lenders have indeed pulled back with their share of new account balances down to 42% from 54% a year ago. Banks are clearly picking up the slack here.
Part of the challenge with most fintech lenders is on the funding side with many large investors waiting on the sidelines.
The bottom line is the personal loan space is still growing with record loan balances of $241 billion in Q3.
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Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s largest digital media company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series.