We are able to gain unique insights into market data and trends within the consumer finance market due to our strategic partnership with TransUnion.
Following a search into what’s been happening in the personal loans market we reported on in January, we thought we’d take a look at the credit card market too. What we found was the number of new credit cards issued in the UK between January and November 2022 grew by 36% compared to the previous year.
We set up another LinkedIn poll to gain an opinion from our followers. The question was, will new credit card volumes grow in 2023 vs 2022? These were the results:
Grow - 71%
Remain flat - 29%
Contract - 0%
Just like the loan poll we undertook, the majority of people were optimistic and 71% of people think the credit card market will grow.
Of the 71% saying the volumes will grow is Joe Coughlin, Analytics Lead at Monevo. He comments, “The cost of living crisis saw many people tighten their belts with regards to spending last year, whilst credit card demand increased as people looked for ways to manage their bills. This type of demand is likely to continue into this year, however if price rises slow down or even decrease in some cases, I think we could also see extra demand for credit cards as people look to fund things they perhaps put off last year, but this will depend on what changes credit card companies make to their lending strategies.”
Lee Stretton, Chief Innovation Officer at Monevo thinks the market will remain flat. He comments, “In my opinion the credit card market will remain flat over the course of the year. As people look to consolidate and potentially cut back on non-essential spending, it makes a great deal of sense for people to switch their existing balances to a 0% balance transfer card. This is another thing that can help give people additional headroom in their own personal finances and put some money back in their pockets by reducing their expenditure on interest charges.”
Lastly, Monevo’s CEO Greg Cox comments, “With a number of credit card companies currently tightening supply due to the economic environment, I think growth in new cards issued is optimistic. That said, I would expect overall balances to increase as consumers have to rely more on their available credit to manage the impact of the cost of living crisis and other economic pressures on the household purse.”