Credit Union Balances Rise, Led by Consumers on Both Ends of the Credit Risk Spectrum
TransUnion's Q3 2024 Credit Union Market Perspectives Report reveals continued growth in credit union balances across all products, with notable increases in super prime and subprime risk tiers. Key findings include:
1. Home equity loan balances grew 14.4% YoY
2. Bankcard balances increased 8.6% YoY
3. Personal loan originations rose 7.0% YoY
4. Mortgage originations saw a slight uptick of 1.8% YoY
The report also highlights lower delinquency rates for credit unions compared to other financial institutions. With the Federal Reserve signaling potential interest rate cuts, experts anticipate increased demand for mortgages and auto loans. The report emphasizes the importance of data-driven, modernized marketing strategies for credit unions to remain competitive in 2025.
Il Rapporto sulle Prospettive del Mercato delle Cooperative di Credito di TransUnion per il terzo trimestre del 2024 rivela una crescita continua nei saldi delle cooperative di credito in tutti i prodotti, con aumenti notevoli nei livelli di rischio super prime e subprime. I risultati principali includono:
1. I saldi dei prestiti garantiti da equity immobiliare sono cresciuti del 14,4% su base annua
2. I saldi delle carte di credito sono aumentati dell'8,6% su base annua
3. Le origini dei prestiti personali sono aumentate del 7,0% su base annua
4. Le origini dei mutui hanno visto un leggero aumento dell'1,8% su base annua
Il rapporto evidenzia anche tassi di insolvenza più bassi per le cooperative di credito rispetto ad altre istituzioni finanziarie. Con la Federal Reserve che segnala potenziali tagli ai tassi di interesse, gli esperti prevedono un aumento della domanda di mutui e prestiti auto. Il rapporto sottolinea l'importanza di strategie di marketing modernizzate e basate sui dati affinché le cooperative di credito rimangano competitive nel 2025.
El Informe de Perspectivas del Mercado de Cooperativas de Crédito de TransUnion para el tercer trimestre de 2024 revela un crecimiento continuo en los saldos de las cooperativas de crédito en todos los productos, con aumentos notables en los niveles de riesgo super prime y subprime. Los hallazgos clave incluyen:
1. Los saldos de préstamos sobre el valor de la vivienda crecieron un 14,4% interanual
2. Los saldos de tarjetas de crédito aumentaron un 8,6% interanual
3. Las originaciones de préstamos personales subieron un 7,0% interanual
4. Las originaciones de hipotecas vieron un ligero aumento del 1,8% interanual
El informe también destaca tasas de morosidad más bajas para las cooperativas de crédito en comparación con otras instituciones financieras. Con la Reserva Federal señalando posibles recortes en las tasas de interés, los expertos anticipan un aumento en la demanda de hipotecas y préstamos para automóviles. El informe enfatiza la importancia de estrategias de marketing modernizadas y basadas en datos para que las cooperativas de crédito sigan siendo competitivas en 2025.
TransUnion의 2024년 3분기 신용 조합 시장 전망 보고서는 모든 상품에서 신용 조합 잔액의 지속적인 성장을 밝혀내며, 슈퍼 프라임 및 서브프라임 리스크 계층의 눈에 띄는 증가를 보이고 있습니다. 주요 발견 사항은 다음과 같습니다:
1. 주택 담보 대출 잔액이 전년 대비 14.4% 성장했습니다.
2. 은행 카드 잔액이 전년 대비 8.6% 증가했습니다.
3. 개인 대출 발생이 전년 대비 7.0% 상승했습니다.
4. 주택 대출 발생은 전년 대비 1.8%의 소폭 증가를 보였습니다.
보고서는 또한 신용 조합의 낮은 연체율을 다른 금융 기관과 비교하여 강조하고 있습니다. 연방 준비 제도가 금리 인하 가능성을 신호하며, 전문가들은 주택 대출과 자동차 대출에 대한 수요 증가를 예측하고 있습니다. 이 보고서는 신용 조합이 2025년에 경쟁력을 유지하기 위해 데이터 기반의 현대화된 마케팅 전략의 중요성을 강조합니다.
Le Rapport sur les Perspectives du Marché des Coopératives de Crédit de TransUnion pour le troisième trimestre 2024 révèle une croissance continue des soldes des coopératives de crédit dans tous les produits, avec des augmentations notables dans les niveaux de risque super prime et subprime. Les principales conclusions incluent :
1. Les soldes des prêts hypothécaires ont augmenté de 14,4% par rapport à l'année précédente
2. Les soldes des cartes de crédit ont augmenté de 8,6% par rapport à l'année précédente
3. Les origines des prêts personnels ont augmenté de 7,0% par rapport à l'année précédente
4. Les origines des prêts immobiliers ont connu une légère hausse de 1,8% par rapport à l'année précédente
Le rapport souligne également des taux de défaut plus faibles pour les coopératives de crédit par rapport à d'autres institutions financières. Avec la Réserve fédérale signifiant d'éventuelles baisses de taux d'intérêt, les experts prévoient une augmentation de la demande de prêts immobiliers et de prêts automobiles. Le rapport souligne l'importance des stratégies de marketing modernisées et basées sur les données pour que les coopératives de crédit restent compétitives en 2025.
Der Bericht über die Marktprognosen für Kreditgenossenschaften von TransUnion für das dritte Quartal 2024 zeigt ein fortgesetztes Wachstum der Kreditgenossenschaftsbestände in allen Produkten, wobei bemerkenswerte Zuwächse in super-prime und subprime Risikostufen verzeichnet werden. Zu den wichtigsten Erkenntnissen gehören:
1. Die Bestände an Eigenheimdarlehen stiegen im Jahresvergleich um 14,4%
2. Die Bestände an Bankkarten erhöhten sich um 8,6% im Jahresvergleich
3. Die Vergaben von Personalkrediten stiegen um 7,0% im Jahresvergleich
4. Die Vergaben von Hypotheken verzeichneten einen leichten Anstieg von 1,8% im Jahresvergleich
Der Bericht hebt auch niedrigere Zahlungsausfallquoten für Kreditgenossenschaften im Vergleich zu anderen Finanzinstitutionen hervor. Mit der Federal Reserve, die mögliche Zinssenkungen signalisiert, erwarten Experten eine erhöhte Nachfrage nach Hypotheken und Autokrediten. Der Bericht unterstreicht die Bedeutung datengetriebenen, modernisierten Marketingstrategien für Kreditgenossenschaften, um 2025 wettbewerbsfähig zu bleiben.
- Credit union balances grew across all consumer lending areas in Q2 2024
- Home equity loan balances increased by 14.4% YoY
- Bankcard balances grew by 8.6% YoY
- Personal loan originations rose by 7.0% YoY
- Mortgage originations increased slightly by 1.8% YoY
- Delinquency rates for credit unions are lower compared to other financial institutions
- Credit union unsecured personal loans and HELoans saw YoY decline in delinquencies
- Originations for many products remain below levels seen two years ago
- Balance growth is uneven across credit risk tiers
- Prime Plus, Prime, and Near Prime risk tiers saw balance share declines for two consecutive years
Insights
The credit union sector shows resilience with balance growth across all consumer lending areas, ranging from
The report reveals intriguing trends in consumer behavior and credit union performance. The divergence in balance growth between risk tiers suggests a K-shaped recovery in the credit market. Super prime consumers are likely leveraging low rates for wealth-building activities, while subprime borrowers may be using credit to bridge financial gaps. The
The credit union sector's performance offers valuable insights into broader economic trends. The robust growth in home equity loan balances (
TransUnion’s Q3 2024 Credit Union Market Perspectives Report explores the current state of consumer credit and its impact on credit unions
CHICAGO, Sept. 05, 2024 (GLOBE NEWSWIRE) -- The newly released Q3 2024 Credit Union Market Perspectives Report from TransUnion (NYSE: TRU) found that balances continue to rise across all credit products, led by share growth among consumers in the super prime and subprime risk tiers.
Among credit unions, balances grew among all consumer lending areas in Q2 2024. Growth ranged from
“Despite a consumer credit market in which originations for many products remain below levels we saw two years ago, credit unions continue to see their total balances increase as they continue to serve the needs of their members,” said Jason Laky, executive vice president and head of financial services at TransUnion. “It will be interesting to watch new loan growth as credit union deposits return to growth and interest rates likely begin falling later this year.”
Taking a deeper look at credit balances, growth has not been equal among all credit risk tiers. In fact, credit unions are now seeing a greater share of their overall balances being found among consumers in the super prime and subprime risk tiers, while other risk tiers saw their shares decline YoY. Each of these other risk tiers has seen their balance share decline for two consecutive years.
Overall Concentrations in Super Prime and Subprime Consumer Balances Have Increased, While Balances in Other Tiers Declined
| Q2 2022 | Q2 2023 | Q2 2024 | ||||
| Super Prime | ||||||
| Prime Plus | ||||||
| Prime | ||||||
| Near Prime | ||||||
| Subprime | ||||||
Source: TransUnion Consumer Credit Database
Among subprime, Q2 2024 represented the fourth consecutive YoY growth in balance share.
On the origination front, Q2 2024 (the latest quarter available for origination data) saw increases in two key lending areas with personal loans up
“With the Fed all but confirming that their next meeting will finally be the time for rate cuts, it would not be surprising to see much of that pent-up demand for mortgages and auto loans begin to finally be realized as more people who have been on the sidelines finally engage,” said Sean Flynn, senior director of community financial institutions at TransUnion.
Delinquencies remain lower among credit union members as compared to other financial institutions
Delinquencies across most credit union lending products are no longer seeing the elevated growth rates of 2021 and 2022, leveling off for some products and even declining YoY for unsecured personal loans and HELoans. Additionally, credit unions continue to see delinquency rates lower than other lenders. Credit unions saw
Flynn concluded, "It's exciting watching the growth and innovation taking place in credit unions. As we look to 2025, it's becoming increasingly clear that to remain relevant and to continue attracting today's consumers, credit unions need to have data-driven, modernized marketing strategies in place. Whether that's more optimized marketing spend in digital advertising or advanced acquisition tools that drive more targeted campaigns, credit unions will need to leverage data and technology to meet consumers where they are, with offers that mean something to them."
To learn more, visit the Q3 2024 Credit Union Market Perspectives Report.
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.
http://www.transunion.com/business
| Contact | Dave Blumberg TransUnion |
| dblumberg@transunion.com | |
| Telephone | 312-972-6646 |
FAQ
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