PeerIQ by Cross River reposted this
TransUnion just released its monthly credit snapshot for July, below for my breakdown (with a focus on bankcard and unsecured credit): ⤵⤵⤵ ➡ In July, 60+ DPDs declined (MoM) for Unsecured Personal Loans ("UPLs") (4)bps, but rose for Auto +9bps, Bankcard +5bps and Mortgage +3bps. This marks the 5th straight month of 60+ DPD declines for UPLs ➡ Looking at bankcard, 90+ DPDs increased +2bps MoM, breaking a 4-month streak of declines, and 30+ DPDs rose +9bps MoM, for a 2nd straight month. Q3 2023 vintage DPDs continue to track higher than Q3 2022 and well above Q3 2018-2021 vintages (see image) ➡ Avg bankcard balances rose +1.1% MoM, to $6,291 ➡ Turning to originations, we got information on UPL origination volume for the Apr 2024 – May 2024 period (lag due to reporting time) ➡ May fintech UPL originations rose for super prime +3.7%, prime +1.8%, near prime +16.0% and subprime +4.0%, while prime plus declined (2.3)%, on a MoM basis. Super prime originations rose +107.9% YoY and prime plus +18.5% while all other risk tiers remained below May 2023 levels, with prime (5.9)%, near prime (24.2)%, and subprime (46.8)% ➡ Credit union originations eased slightly MoM for super prime (0.6)%, prime plus (2.9)%, and prime (2.3)%, while near prime +13.7% and subprime +15.1%. On a YoY basis, super prime +3.1% was above 2023 levels, while all others were below - prime plus (9.0)%, prime (8.6)%, near prime (11.7)% and subprime (9.9)% ➡ Finance companies MoM UPL originations declined for super prime (2.6)%, but rose for all other risk tiers: prime plus +4.9%, prime +6.6%, near prime +9.2% and subprime +17.2%. On a YoY basis, originations were up across the board, with super prime +38.0%, prime plus +21.4%, prime +34.2%, near prime +26.8% and subprime +13.5% all above 2023 levels ➡ Banks reported MoM declines for super prime (1.6)%, and prime (4.1)%, while reporting MoM increases for prime plus +1.3%, near prime +2.7%, and subprime +9.8%. Bank originations were lower than May 2023 levels for super prime (27.4)%, prime plus (28.9)%, prime (34.7)%, and near prime (20.1)%. Subprime +1.7% was the only tier above 2023 levels ➡ In Jun, finance companies maintained their lead in UPL balances, with 29.0% of the total, compared to 28.2% for fintechs, 22.3% for banks and 20.6% for credit unions ➡ In July, average UPL balances per consumer fell (0.7)% on a MoM basis, to $11,782 (Initial takeaways in comments ⤵⤵⤵) Thanks again to Dan Simmons and the TransUnion team for the great data! If you found value in this post, please like 👍 and share for visibility For more fintech and consumer lending coverage: ➡ Follow/connect with me here, join my discord server (link in bio), and subscribe to the Cross River IQ (fka PeerIQ by Cross River) newsletter #consumerlending #consumercredit #fintech