More than 80 percent of Hong Kong's young adult consumers agree that credit access is important for achieving their financial goals, while 60 percent say credit would give them access to new opportunities that could lead to a better quality of life, a survey shows.
The study assessed credit participation and engagement patterns against industry benchmarks of consumers across all ages and drew on TransUnion Hong Kong’s Consumer Credit Database to examine borrowers across three cohorts – from June 2022, 2023 and 2024 – with supplementary context from its Consumer Pulse Study for the fourth quarter of 2024, which surveyed 1,000 adults from September 25 to October 5.
By investigating the credit behaviors of consumers aged between 21 and 30 years, TransUnion found that younger borrowers have the significant potential for growth for Hong Kong’s credit market.
The study showed that 70 percent of young adults aged 21 to 25 held a credit card, which is the most popular credit product, which indicates that younger consumers actively participated in the credit market.
The proportion of young consumers aged 26 to 30 years holding a personal loan is also higher than the average for borrowers across all ages, which is nearly 11 percent, revealing greater wallet diversity among the young generation.
However, only 3 percent of young adult consumers returned to their first lender for subsequent products. Lenders should seize opportunities to build loyalty among the young generation, TransUnion said.
In terms of credit obligations, young adults have higher delinquency rates compared to consumers in other age groups, although Hong Kong delinquency rates, even for younger consumers, remain low in comparison with other global markets.
“By adopting targeted approaches in credit education, wallet diversification, loyalty enhancement, risk optimization, and proactive delinquency management, lenders can effectively engage younger consumers, supporting them through their financial journeys and securing long-term sustainable growth,” said Sun Weihan, Asia Pacific principal of research and consulting at TransUnion.
HELEN ZHONG
