Here are the top three trends from across the globe in 2022:
Rise of unsecured debt
Credit cards are returning after years of a shrinking market
In Australia, credit card demand rose 21% compared to Q4 2021. This positive growth came after declining levels since 2018 as Buy Now Pay Later took off in the Australian market. In Canada, credit card utilization is increasing with high consumer spending. It is currently at 22.7%, up 7.3% from Q4 2021.
Consumer delinquencies continue to rise
In 2022, more consumers missed payments on their credit products than in 2021
Delinquency rates continue to rise with some regions surpassing pre-pandemic levels. In the US, installment loan delinquency is up 29.7% since Q4 2021. In Canada, credit card and auto loans are starting to see a rise in delinquency rate with auto delinquencies fast approaching pre-pandemic levels.
Global slowdown in mortgage
Key indicators show a slowdown across regions
Overall mortgage originations across multiple regions fell 44% compared to 12 months ago. Bucking the trend, the UK experienced positive growth of 13% as consumers looked to refinance ahead of expected interest rate rises. In Canada, new mortgage origination went down by 38% compared to Q4 2021.