Hong Kong's consumer credit market continued to benefit from improving lender and consumer confidence in the second quarter of 2026, as stronger domestic demand supported balance growth across credit cards and personal loans. New activity reflected a disciplined approach from lenders, with originations increasingly concentrated among lower-risk borrowers, while portfolio performance remained broadly stable to improving.

These insights are drawn from the TransUnion (NYSE: TRU) Hong Kong Industry Insights Report for Q2 2026, a quarter in which GDP grew 4.3%¹, driven by robust exports and resilient domestic demand. Meanwhile residential property prices rose 7.9%² in the first half of the year, reaching their highest level in two and a half years. Consumer confidence also improved, with the value of total retail sales increasing 4.6% year-over-year (YoY)³ in June, led by 20.1% growth in jewellery and valuable gifts and an 11.3% increase in electronic and durable consumer goods.

Credit Card Balances Reflect Renewed Consumer Retail Spending Momentum

Against this positive backdrop, credit card origination volumes rose 6.7% YoY during Q1 2026⁴, with prime plus⁵ consumers recording the highest growth across all risk tiers at 21.1% YoY, followed by super prime borrowers at 6.9%. In addition to strong retail spending and improving macroeconomic conditions, competitive lender promotions during the Chinese New Year holiday season in Q1 also contributed to this growth.

Across generations, Gen Z⁶ accounted for nearly one in four (24.9%) new card originations, up 1.8 percentage points from a year earlier. This aligns with findings from TransUnion’s Q1 2026 Consumer Pulse Study, which showed that among Gen Z consumers intending to apply for new credit or refinance, nearly half (44%) were considering a credit card, up seven percentage points from 2025.

Despite origination growth being driven by consumers in the prime plus and super prime risk tiers, average credit limits on new cards issued declined by 6.3% YoY in Q1 2026, reflecting lenders’ continued underwriting discipline.

Outstanding credit card balances grew 4.3% YoY in Q2 2026, amid sustained consumer spending activity in line with the broader retail trends. Consumers continued to leverage their cards to support consumption needs, driving a 3.4% YoY increase in average balance per consumer.

"Credit card trends in Q2 2026 closely mirror the positive momentum we are seeing in Hong Kong's retail sector," said Weihan Sun, senior director of research and consulting for Asia Pacific at TransUnion. "Lenders continue to meet demand selectively, prioritising lower-risk consumers while maintaining prudent underwriting standards. As consumer confidence improves, capturing and defending share of wallet among prime and above cardholders will be a key opportunity for lenders in the months ahead."

Personal Loan Growth Shifted Towards Higher-Quality Borrowers and Larger Loan Sizes

Although personal loan origination volumes declined slightly by 1.4% YoY in Q1 2026, average loan sizes increased by a significant 9.1% in the same period, driven by greater appetite from larger lenders and a growing share of prime plus and super prime borrowers, whose originations rose 11.7% and 15.5% YoY, respectively. While these better risk tiers still accounted for less than 10% of originations, they contributed disproportionately to the outstanding balance growth of approximately 4.3% YoY, given the larger loan amounts they tend to carry.

While Millennials accounted for the largest share of personal loan originations in Q1 2026 at 42.7%, their strong interest in this product was also reflected in the Consumer Pulse Study. Among Millennials intending to apply for credit or refinance, 42% preferred a new personal loan, up six percentage points from 36% a year earlier, signalling a growing diversification of credit usage among the largest borrower segment beyond credit cards.

Personal loan performance continued to improve across all measures. The largest improvement was seen in consumer-level delinquency, which declined by 7 basis points (bps) YoY to 0.91% (measured as the percentage of consumers with 60 or more days past due, or DPD). The account-level rate decreased by 3 bps to 0.81%, while the balance-level rate fell by 1 bp to 0.52%. This positive trend has been sustained over several quarters, providing lenders with greater confidence to extend credit.

"The personal loan market reflects a meaningful shift in borrower profile," said Sun. "We are seeing greater participation from lower-risk borrowers and proactive lender engagement, supported by improving portfolio performance across all delinquency measures. This combination of quality demand and disciplined supply positions the market well for continued, sustainable growth."

Average Revolving Line Balances Increased Despite Fewer Consumers Carrying Balances

Revolving line activity remained subdued in Q2 2026, continuing a trend of measured market contraction.

Origination volumes in Q1 2026 declined by 7.8% YoY, marking a considerably slower rate of decline than in previous quarters. This sustained contraction in new account originations occurred as the market continued to normalise following the withdrawal of low-limit revolving line products amid elevated delinquencies. With originations now increasingly led by money lenders, whose share increased by 8.2 percentage points YoY, average limits on newly originated accounts grew by 18.4% YoY.

The number of consumers carrying revolving line balances fell 5.5% YoY, while average balances among active borrowers rose 5.9%, indicating continued engagement among consumers who maintain these facilities.

Following several quarters of tightened underwriting by lenders, portfolio performance continued to improve. The account-level delinquency rate (60+ DPD) declined by eight bps YoY, to 0.43%, while consumer- and balance-level delinquency rates fell as well.

Q2 2026 Metrics for Major Consumer Credit Products in Hong Kong

i. Originations are viewed one quarter in arrears to account for reporting lag.

ii. Serious-delinquency rates are 90 or more days past due for credit cards and 60 or more days past due for all other credit products.

iii. Delinquency data are reported at an account-level up to 150 days past due, excludes 150+ days past due and charge-offs.

“Looking ahead, lenders have a clear opportunity to capture rising organic demand for credit cards from Gen Z consumers, while defending their top-of-wallet position with prime and above borrowers who continue to drive card origination growth. At the same time, growing wallet diversification among Millennials for personal loans is reshaping engagement strategies,” said Sun. “With improving economic conditions and renewed consumer confidence, lenders that can effectively identify and engage these distinct segments through advanced analytics will be best positioned to deliver sustainable growth in the second half of 2026.”

¹ News.gov.hk: Economy grows 4.3% in Q2

² Rating and Valuation Department: Property Market Statistics

³ Census and Statistic Department: Provisional Statistics of Retail Sales for June 2026

⁴ Origination figures are reported three months in arrears due to reporting lag

⁵ TransUnion CreditVision® risk score: Subprime = JJ to II; Near prime = HH to DD; Prime = CC; Prime plus = BB; Super prime = AA

⁶ Generations are defined as follows: Gen Z, born 1995–2004; Millennials, born 1980–1994; Gen X, born 1965–1979; and Baby Boomers, born 1944–1964

Mrs Kan is a distinguished banking executive with more than 40 years of leadership experience across global, regional and Greater China markets. Most recently, she served as Executive Director and Deputy Chief Executive Officer of China CITIC Bank (International), where she spearheaded the bank’s FinTech and digital innovation agenda. Earlier in her career, she spent more than 25 years at Standard Chartered Bank, holding senior leadership roles across Consumer Finance, Product Management, Sales and Distribution, as well as overseeing other major strategic initiatives. With a forward-thinking and agile vision, Mrs Kan played a leading role in driving FinTech innovation in the banking industry and advancing more accessible and inclusive financial services for a broader consumer base.

As digital transformation continues to reshape industries, Mrs Kan’s deep expertise complements TransUnion’s evolution from a pioneering credit reference agency in Hong Kong into a trusted information and insights partner for businesses and consumers. Through a suite of identity-based solutions that enable more informed credit decisions and stronger fraud prevention, TransUnion supports sustainable growth for individuals, corporates and the broader industry. Her appointment will further accelerate the company’s ongoing effort to drive financial inclusion and contribute to a more resilient and robust foundation for Hong Kong’s financial ecosystem.

Beyond her executive career, Mrs Kan has made significant contributions to Hong Kong’s financial and professional communities through a range of leadership roles. She currently serves as Honorary Adviser of the Hong Kong Institute of Bankers, Board Member of the Hong Kong Deposit Protection Board and Member of the Protection of Critical Infrastructure (Computer Systems) Appeal Board. She is also actively involved in education, youth development, women’s empowerment and professional advancement, with governance roles at the Hong Kong University of Science and Technology, as well as serving as a Hong Kong SAR Delegate to the All China Women’s Federation and an Executive Committee Member of the Hong Kong Professionals and Senior Executives Association.

“We are delighted to welcome Helen to the Board as TransUnion continues to strengthen its role as a trusted information and insights partner in Hong Kong,” said Marie Claire Lim Moore, Asia-Pacific Regional President and Hong Kong CEO at TransUnion, “Helen’s extensive experience across financial services, coupled with her innovative mindset and future-oriented vision, will bring valuable perspectives to the company and support TransUnion in advancing our Information for Good mission by enabling more confident, informed decisions, fostering greater trust across Hong Kong’s financial ecosystem.”

Mrs Kan said: “It is a pleasure and an honour to join the Board of TUCIS at a time when trusted information and insights are increasingly important in a highly digital economy. As market needs continue to evolve, TransUnion has expanded beyond traditional credit information by extending its data and analytic capabilities into areas such as fraud prevention and solutions that support growing cross-border financial needs. I look forward to working with the Board and management team to support the company’s next chapter of growth while continuing our contribution to Hong Kong’s position as an international financial centre.”

• Fewer consumers expected income growth in the coming year compared to a year ago, with nearly one-third (30%) saying earnings are not keeping pace with inflation
• 35% said they recently reduced discretionary spending and 37% boosted emergency savings, with future spending expectations increasingly focused on essentials
• Intent to apply for new credit or refinance fell sharply from 42% in Q2 2025 to 27% in Q2 2026, despite strong confidence in credit access

Global information and insights company and Hong Kong’s leading credit reference agency, TransUnion (NYSE: TRU), today released its Consumer Pulse Study for Q2 2026. The report revealed that Hong Kong consumers were adopting a more cautious approach towards finances amid prevailing economic uncertainty and moderating income prospects. Although borrowing intentions declined as most consumers exercised greater prudence and selectivity in taking on additional debt, Gen Z¹ continued to demonstrate stronger credit demand than other generations.

Softened Income Outlook and Lingering Financial Concerns Among Hong Kong Consumers

In Q2 2026, Hong Kong consumers showed a more cautious income outlook than last year, shaped by softer reported current earnings and weaker expectations. According to the study, 64% of consumers reported their income was unchanged or had declined over the past three months, up eight percentage points from the same period last year. This moderation is also reflected in consumers’ more conservative expectations, with fewer than half (42%) expecting their income to increase over the next 12 months, down from 49% a year ago. Meanwhile, close to 60% anticipate no change or even a decline in income over the next year – 45% foresee no change and 13% a decrease. This is up from Q2 2025, when 51% of consumers expressed a similar sentiment (38% no change, 14% decrease).

Against this backdrop, financial pressures also remain persistent as respondents identified recession (56%), job security and inflation on everyday goods (both at 55%) in their top three biggest concerns affecting household finances over the next six months. These worries might have been driven by ongoing geopolitical pressures and labour market uncertainty, despite growing economic activities and relatively strong GDP growth of 5.9% in Q1 2026².

Notably, while Hong Kong’s inflation remained moderate at 1.7% from February through April 2026^3,4, nearly one-third (30%) of respondents reported their income is unable to keep pace with inflation, coinciding with upward pressure on international oil prices that led to higher electricity, gas, water and transport costs in the city.

Households Adjust Spending and Cashflows To Manage Higher Living Costs

Despite a year-over-year (YoY) moderation in income growth and persistent financial concerns, more than half (55%) of consumers still expressed optimism about their household finances over the next 12 months. The positive sentiment aligned with a large majority (87%) expecting to pay off all current bills and loans in full, with a remarkable eleven percentage point surge from Q2 2025.

This confidence is likely underpinned by stronger cashflow management and more disciplined spending among Hong Kong consumers. Over the past three months, households have adopted more deliberate budgeting, with over one-third (35%) reporting cutting back on discretionary spending like dining out, travel and entertainment. At the same time, those who said they increased spending in these areas fell from 29% to 21%, while 37% reported increasing contributions to emergency savings.

Looking ahead, a similar prudence is also evident in planned spending. More than one quarter (28%) anticipate higher payments on bills and loans across key categories such as housing, utilities, insurance and credit cards, as well as higher contributions in retirement funds and investments over the next three months. Meanwhile, 27% expected a rise in medical care and services costs, suggesting a stronger focus on essential consumption needs. These were the categories that consumers said they would increase spending on the most in the short term. At the same time, consumers continued to show greater caution towards big-ticket items such as cars and appliances, with 38% planning to scale back large purchases, the highest percentage decrease among categories analysed.

“While Hong Kong's overall economic performance remains comparatively strong, a more guarded income environment and persistent cost of living pressures, along with the potential for rising household expenses amid evolving macroeconomic conditions, continue to weigh on consumer sentiment,” said Weihan Sun, senior director of research and consulting for Asia Pacific at TransUnion. “What stands out in this environment, however, is the sustained financial discipline evident across households. Consumers actively review and adjust their financial arrangements in response to emerging concerns. This prudent, forward-looking approach directly reinforces financial resilience and represents a genuinely encouraging sign for the broader consumer outlook.”

New Credit Demand Retreated Amid Heightened Caution

Hong Kong consumers’ prudent financial management also extended to their approach to credit. In Q2 2026, consumer confidence in credit access remained strong, with 57% agreeing they had sufficient access to credit and lending products, slightly up from 55% a year earlier. Meanwhile, 67% believed they would be approved for a credit or lending product if needed, rising from 63% in Q2 2025. However, this positive sentiment did not translate into stronger borrowing appetite, as intentions to apply for new credit or refinance fell sharply to 27%, down 15 percentage points YoY. The decline indicates that Hong Kong households have become more selective and cautious about taking on additional debt.

This retreat in credit demand also reflected a drop in the perceived importance of credit. The share of consumers who view credit and lending product access as extremely or very important in achieving their financial goals eased slightly to 51% from 56% a year ago. Millennials and Gen X recorded the largest declines in perceived importance, while Gen Z remained comparatively resilient, with 61% still viewing credit as extremely or very important, reinforcing younger consumers’ continued appetite for credit to achieve financial mobility.

In terms of product preference, among those who planned to seek credit in the next year, borrowing remained concentrated in consumption-led unsecured products: 51% intended to apply for a new credit card, 28% planned to use buy now, pay later payment services (known as interest-free instalment payment plans in Hong Kong) and 27% expected to request credit line increases.

“Although overall credit intentions have eased, as reflected in the latest Consumer Pulse Study, sustained engagement among Gen Z and continued interest in consumption-led unsecured products show that credit has not lost its relevance,” said Sun. “Rather than framing credit as something to be avoided entirely for prudent financial management, responsible use is the key to preserving its value as a practical resource, especially in times of uncertainty. This approach begins with a clear understanding of one’s credit health, with regular review as the foundation, so that consumers can make more confident, informed financial decisions and prepare for any unexpected shocks, ultimately strengthening long-term household financial resilience.”

TransUnion’s Q2 2026 Consumer Pulse Study consisted of a survey of 973 adults aged 18 and older residing in Hong Kong between 29 April and 10 May 2026. This quarterly study examines shifting consumer attitudes and behaviours based on the dynamics of income, debt and identity theft. For more information, please view the full Consumer Pulse Study Q2 2026 Report.

¹ Generations are defined in this research as follows: Gen Z, 18–29 years old; Millennials, 30–45 years old; Gen X, 46–61 years old; and Baby   Boomers, age 62 and above

² Hong Kong Economy: Latest Developments

³ News.gov.hk: Inflation at 1.7% in Feb

⁴ News.gov.hk: Apr inflation holds at 1.7%

Hong Kong’s consumer credit market showed mixed trends in the first quarter of 2026 as credit cards and personal loans remained broadly stable, supported by healthy outstanding balance growth and steady repayment performance. However, revolving lines and loans on card continued to contract, reflecting more selective lender activity and softer demand in those segments.

These insights and others are shared in the TransUnion (NYSE: TRU) Hong Kong Industry Insights Report for Q1 2026, which also showed that credit delinquency trends remained largely stable or improved, suggesting prudent repayment behaviour among consumers, while lenders’ disciplined underwriting and portfolio management continued to support credit quality. This is in the context of a steady inflation rate, at 1.7% for February and March¹, and a 5.9% GDP growth² in the quarter – the strongest in nearly five years.

Credit Card Spend Remained Strong

Hong Kong’s credit card market remained stable, with outstanding balances and average balance per consumer increasing during the first quarter of the year, despite a decline in total card accounts. Outstanding card balances rose 4.9% year-over-year (YoY), and average balance per consumer increased 3.6% YoY, reflecting sustained spending momentum. The total number of card accounts declined by 2.1% YoY, due in part to the closure of dormant accounts, by lenders, which contributed to a 3.4% YoY decline in average total card credit limit per consumer.

Origination trends also improved; although new account volumes were slightly lower YoY, at -1.1% in Q4 2025³, this was a slower rate of decline than was seen in previous quarters. The market saw a growing contribution from younger consumers as Gen Z⁴ accounted for nearly three in ten (29.4%) new card originations, up from 26.3% a year ago, indicating continued participation from this segment as labour market conditions improved.

From a risk perspective, credit card performance remained steady. Delinquency rates were broadly unchanged at the account and consumer level, while balance-level delinquency rose by only one basis point YoY to 0.23%.

“The credit card portfolio reflects a healthy balance of resilient spending and stable risk,” said Weihan Sun, senior director of research and consulting for Asia Pacific at TransUnion. “This was likely due to a surge in domestic demand, with private consumption estimated to have grown by around 5.0%⁵ YoY, supported by a calendar of government-backed ‘mega events’ as well as a steady return of live entertainment and conferences. Card issuers would benefit from ensuring that their account management programs are focused on maintaining or increasing their share of wallet to drive profitable balance sheet growth,” added Sun.

Personal Loans Growth Driven by Larger Loan Sizes Despite Softer Originations

New personal loan amounts increased 12.1% YoY during Q1 2026, supporting a 3.6% YoY growth in total outstanding balances, while total personal loan accounts rose 1.3% YoY. Average balance per consumer climbed 2.7%, and the number of consumers with an open personal loan account edged up 1.6%. These findings show that lenders are focused on enabling greater access in the personal loan market, led by improvements in performance trends.

Delinquencies declined at both account (down by two basis points to 0.84%) and consumer level (down by five basis points to 0.95%). Balance-level delinquency also improved by two basis points to 0.55%. Taken together, these findings show the personal loan segment experienced stable underlying demand, higher supply amounts and improving portfolio performance.

“The personal loans market was resilient during 2025, although originations slowed down by three percent during the last quarter of the year,” Sun said. “The market was largely resilient in terms of demand and supply throughout 2025 despite that slowdown in Q4, but demand further picked up again in the first quarter of 2026 when enquiries for new loans increased by 2.7% YoY. The growth in the number of consumers carrying a balance shows that there is still good engagement with this product. Lenders would benefit from identifying consumers who have the propensity to open personal loans by leveraging consumer trended attributes.”

Revolving Line Originations Contracted Sharply with Balances Declined

In contrast to the stable origination trends in credit card and personal loans, revolving line originations declined 40% YoY, continuing a trend seen throughout 2025 after some digital banks scaled back low-limit product offerings following elevated delinquencies. Originations increasingly were led by traditional lenders and money lenders, where line assignments tend to be larger. As a result, the average limit on newly originated accounts increased by 24.8% YoY.

The number of consumers carrying a revolving line balance decreased by 9.7% YoY, and outstanding balances decreased by 1.6% YoY. However, younger consumers continued to show interest in revolving credit, with Gen Z representing nearly one in three (32.9%) originations.

Account-level delinquencies improved by eight basis points to 0.44%, while consumer-level delinquencies improved by 13 basis points. These changes reflect both portfolio cleanup and a more cautious lending environment, which are likely to lead to a recovery in these products as volumes and limits become normalised.

“As outstanding balances continued to decline amid encouraging performance trends, the revolving line segment appears to be stabilising as lenders focus on more sustainable growth, including addressing consumer behaviour on high delinquency small facility products,” said Sun.

Loan on Card Originations Contracted and Balances Declined

Loan on card activity continued to moderate, extending a trend seen through much of 2025. Origination volumes declined by 28.3% YoY in Q4 2025 as some lenders reduced campaign activity. This pullback contributed to a 12.3% YoY decline in total loan on card accounts and a 5.6% YoY drop in outstanding balances in Q1 2026. The number of consumers with an active balance also declined 12.6%, reinforcing the view that both supply and demand softened in this segment.

At the same time, the consumers who continued to use the product utilised larger share of open lines. Average opening balances increased 11.7%, and the average balance per consumer rose 8.0%. This indicates that while fewer consumers were using loan on card, those who remained active were borrowing higher amounts and carrying larger balances.

“Hong Kong’s consumer credit market continued to show a measured and differentiated pattern across products during the first quarter of the year,” Sun said. “Resilient spending and balance growth in credit card and personal loans are helping support market stability, while moderated usage in revolving lines and loan on card reflects more selective activity rather than broad-based deterioration.”

Q1 2026 Metrics for Major Consumer Credit Products in Hong Kong

 i. Originations are viewed one quarter in arrears to account for reporting lag.         

ii. Serious-delinquency rates are 90 or more days past due for credit cards and 60 or more days past due for all other credit products.

iii. Delinquency data are reported at an account-level up to 150 days past due, excludes 150+ days past due and charge-offs.

“These trends reflect that the Hong Kong financial services market is becoming more balanced rather than broadly expansionary,” said Sun. “For lenders, the priority in 2026 will be to capture growth in stronger segments while maintaining discipline in underwriting and portfolio management. The mix of improving domestic consumption and changing borrower behaviour is likely to reshape credit demand across both secured and unsecured products. In this environment, staying close to emerging opportunities and risks, while acting swiftly on data-driven insights and analytics, will be critical to navigating an increasingly nuanced landscape.”

1 Info.gov.hk: Consumer Price Indices for February and March 2026

2 News.gov.hk: Economy grows 5.9% in Q1

3 Origination figures are reported three months in arrears due to reporting lag

4 Generations are defined as follows: Gen Z, born 1995–2004; Millennials, born 1980–1994; Gen X, born 1965–1979; and Baby Boomers, born 1944–1964 

5 Info.gov.hk: Advance estimates on Gross Domestic Product for first quarter of 2026

Global information and insights company and Hong Kong’s leading credit reference agency, TransUnion (NYSE: TRU), today announced the launch of a market-first initiative offering a one-time free credit report per year for eligible individuals who have lost their Hong Kong Identity Cards (HKID)¹. This initiative aims to provide affected individuals with immediate visibility into their credit profile during a high-risk window after HKID loss, helping to minimise potential financial losses resulting from identity theft and safeguarding long-term credit health.

According to TransUnion’s latest H1 2026 Update to the Top Fraud Trends Report, identity theft remains a significant threat in Hong Kong, cited as the leading cause by more than one-third (34%) of consumers who reported losing money to digital fraud last year. This comes as Hong Kong recorded the highest median digital fraud loss globally at HK$48,000. Stolen identities can be used to enable unauthorised account openings, fraudulent loan applications and credit overextension, with reported individual losses exceeding HK$2.5 million in recent cases. Yet, data from TransUnion’s Fraud Report shows an alarming reactive response among victims – only 42% reached out to impacted companies such as credit card providers, while even fewer (39%) contacted credit reference agencies for support. This lack of immediate remedial action further amplifies the high-risk window following HKID loss.

To help the public mitigate identity theft risks during this critical window, TransUnion is providing an immediate safety net by offering a one-time free credit report to all eligible individuals in the city. Affected individuals can now claim their report by scheduling an appointment online within 30 days of the loss and presenting the required documentation in-person at TransUnion’s Hong Kong office. This complimentary report serves as a practical and timely tool that gives individuals a clear, comprehensive view of their credit standing to identify early red flags, such as unauthorised accounts opened in their name or unexpected credit checks from unfamiliar financial institutions. It enables swift action – including promptly notifying financial institutions or freezing suspicious accounts – to minimise potential fraud and long-term damage to credit health.

While this one-time credit report provides immediate support, individuals are also encouraged to take additional steps to secure their identity following an HKID loss, such as filing a police report and promptly notifying relevant financial institutions. As identity risk persists well beyond the initial incident, keeping track of your personal credit profile over the long-term through regular monitoring and setting up credit alerts are essential to maintaining ongoing protection.

“Identity theft can happen in a flash – fraudsters can exploit stolen identities within hours to open accounts and secure loans, causing immediate financial losses and potentially long-term damage to credit health,” said Lawrence Chau, Director of Consumer Interactive, Asia Pacific at TransUnion, “Do not let your credit record be a risk – make it your opportunity. As the first credit reference agency to offer this dedicated service to all citizens, this initiative provides individuals with timely visibility into their credit profile during a critical window. Driven by our data-led identity insights, advanced analytics and decades of local experience, TransUnion has long been a pioneer in fraud prevention in Hong Kong. We remain committed to equipping individuals with a comprehensive suite of tools to help safeguard their identities and financial well-being against evolving fraud threats.”

To learn more about how TransUnion supports individuals affected by HKID loss in monitoring and minimising identity theft risks, please visit: TransUnion Offers Free Credit Report to Individuals Affected by HKID Loss

1 For Terms and Conditions, please refer to: TransUnion Offers Free Credit Report to Individuals Affected by HKID Loss

Avishek has more than 17 years of experience in global banking, combining strong international exposure across Hong Kong, India and the United Kingdom with extensive cross‑regional collaboration spanning Asia Pacific, Europe, the Middle East and Africa (EMEA), and the Americas. Prior to this role, he served as Senior Vice President at HSBC, where he led the unsecured lending business across nine Asian markets. Avishek holds a master’s degree in statistics from the Indian Statistical Institute in Kolkata.

He brings deep expertise in advanced analytics and data science leadership, with a proven track record of applying emerging data technologies to shape product strategy and deliver measurable outcomes. This background in data innovation aligns closely with TransUnion’s evolution from a traditional credit reference agency to a trusted information and insights partner, enabling organisations to view consumer identity holistically through diverse data assets and helping them to make informed decisions with confidence, which forms the foundation of trust in the modern economy.

This appointment marks a significant milestone for TransUnion Asia Pacific, as it brings together regional analytics capabilities – including Data Science and Analytics (DSA), Data Asset Management (DAM) and Data Strategy (DS) – into a more integrated structure under one regional leadership model. Together, these efforts will continue to accelerate TransUnion’s analytics value creation and reinforce its commitment to the responsible and secure use of data.

“As the role of information and data continues to grow in enabling robust and evidence‑based financial decisions in today’s economy – particularly amid persistent global uncertainties, rising fraud risks and increasing regional integration such as the Greater Bay Area – the capabilities to manage, analyse and translate data into trusted and meaningful insights has never been more important,” said Marie Claire Lim Moore, Asia-Pacific Regional President and Hong Kong CEO at TransUnion. “Data and analytics are central to TransUnion’s continued evolution into a trusted information and insights partner powered by identity-based intelligence. We are pleased to welcome Avishek, whose deep expertise in data-driven transformation and strategic analytics will further strengthen our ability to deliver value beyond credit, supporting businesses and consumers in making more confident, informed decisions and advancing our mission of Information for Good.”

Commenting on his appointment, Avishek said: “It is an honour to join TransUnion at a time when trusted data and insights are increasingly vital in helping financial institutions, businesses and consumers navigate a rapidly evolving environment. TransUnion has built a strong platform that harnesses data responsibly to drive transparency and resilience. The integration of our regional data strategy – encompassing effective sourcing, disciplined standardisation, advanced analytics and rigorous quality management – underpins a robust, secure and well-governed data ecosystem. I look forward to building on this foundation to deliver meaningful impact for business, individuals and the broader Hong Kong economy.”

• Despite a lower suspected digital fraud rate of 2.8% in 2025 compared with the global figure of 3.8%, Hong Kong showed a contrasting pattern of lower-frequency but higher-severity fraud
• The telecommunications industry exhibited the highest suspected digital fraud rate in Hong Kong in 2025, followed by communities and logistics
• Account login represented the highest-risk stage for attempted transactions in Hong Kong, with a 10.1% suspected digital fraud rate, more than twice the global average

Analysis from the H1 2026 Update to the Top Fraud Trends Report published by TransUnion (NYSE: TRU) found that 2.8% of all attempted digital transactions where the consumer was in Hong Kong were suspected to be digital fraud¹ in 2025, down from 5% a year ago and below the global rate of 3.8%. This  is also reflected in the city’s official statistics, which recorded a modest 2.9%² year-on-year (YoY) decline in fraud cases in 2025, while Q1 2026 also showed a 0.6%³ YoY decrease, possibly supported by continuous public initiatives and broader awareness campaigns, along with more cautious risk management practices adopted across the private sector.

Encouragingly, this progress was also mirrored in consumer sentiment. More than half (53%) of Hong Kong consumers reported that they did not recall or recognise being targeted by digital fraud via online, email, phone call or text messaging from August to December 2025, marking a 10% increase compared with 2024 and above the global figure of 47%.⁴

Hong Kong Showed a Contrasting Pattern of Lower-Frequency and Higher-Severity Fraud

Despite a decrease in the suspected digital fraud rate, 17% of Hong Kong consumers reported financial losses due to digital fraud in the last year, according to a TransUnion survey conducted between November and December 2025 across 18 countries and regions, including 1,000 respondents from Hong Kong. This brings the median fraud loss to US$6,155, equivalent to approximately HK$48,000⁵ – substantially higher than the global median of US$1,671 (approximately HK$13,000⁵), positioning Hong Kong as the market with the highest median fraud loss among all regions surveyed.

Yet this significant financial exposure has not translated into proportionate vigilance. Among those Hong Kong consumers who discovered they had fallen victim to fraud, fewer than half (46%) said they called the police, and only 42% indicated they placed a fraud alert on their credit report. This gap between the magnitude of the threat and limited mitigation or remedial actions taken underscores the importance of fostering more proactive consumer behaviours to strengthen individual defences against fraud and minimise the impact after falling victim.

Telecommunications, Communities and Logistics Emerged as Top Targets for Suspected Digital Fraud

In 2025, the telecommunications industry recorded the highest suspected digital fraud rate at 5.8% for attempted transactions where the consumer was in Hong Kong, notably exceeding the global average of 4.2% and representing a 56% YoY rate surge. These figures highlight the heightened risk facing the telecommunications sector, as fraudsters increasingly leverage telecommunications networks, mobile services and high-volume digital transactions to carry out fraudulent activities.

The elevated risk aligns with findings from the Anti-Deception Coordination Centre (ADCC) ⁶. In 2025, scams involving impersonation of a telecommunications service provider staff were reported, with fraudsters using stolen personal data, including names and HKID numbers, to fabricate credibility and deceive individuals into conducting fraudulent payments.

Meanwhile, the communities’ industry, comprising online dating sites and forums, remained the second-riskiest sector in Hong Kong in 2025 with a 5.4% suspected digital fraud rate, reflecting a trend from the previous year. This was followed closely by the logistics industry at 5%, a figure that significantly exceeded the global average of 1.6%.

"While Hong Kong’s suspected digital fraud rate is below the global benchmark, our study reveals that local consumers report suffering the highest median fraud losses, more than 3.5 times the global level. Despite this, many consumers still overlook essential remedial measures even after recognising they have been fallen victim to fraud," said Devon Sin, chief product officer at TransUnion Asia Pacific. "Fraud risk remains persistent and widespread, especially in the telecommunications industry as mobile usage becomes integral to everyday transactions, opening up more avenues for abuse. Hence, consumers must proactively leverage trusted tools to continuously monitor and safeguard their personal information before fraudsters have the opportunity to strike."

Fraudsters Targeted Early Stages of Consumer Lifecycle, Prompting Reinforced Protection at Every Touchpoint

Vulnerabilities in consumers’ digital lifecycle were particularly prominent during the initial stages. Account logins recorded the highest suspected digital fraud rate at 10.1% in Hong Kong in 2025, more than twice the global average of 4.3%. Similarly, the suspected digital fraud rate during account creation was also high at 9.7%, exceeding the global average of 8.3%. In contrast, financial transaction suspected digital fraud in the city was significantly lower at 0.3%, suggesting that strong security protocols are in place for authenticated users.

The Suspected Digital Fraud Rate of Account Creation and Login in Hong Kong Both Surpassed Global Levels in 2025

Source: TransUnion global intelligence network
 

With account creation and login reported as key points of vulnerability, attacks could involve misuse or manipulation of personal identities. In Hong Kong, such identity-based attacks have been a significant driver of financial losses. In particular, identity theft (personal information like name, address or phone number was stolen in a data breach) emerged as the top reported cause of fraud loss, cited by 34% of Hong Kong consumers who said they lost funds to digital fraud in the last year. This was followed closely by vishing (fraudulent phone calls that induce consumers to reveal personal information) and money mule scams (consumer being solicited to transfer or move illegally acquired money on behalf of someone else), both at 31%.

In response, Hong Kong consumers have become increasingly vigilant and are gravitating towards businesses that guarantee stringent authentication and layered defences. The vast majority (79%) of respondents expressed a preference for accessing online services such as bank accounts with explicit authentication, and 75% favoured keeping multi-factor authentication permanently enabled. When asked which extra security measures they preferred, consumers’ top answers were facial biometrics (19%) and fingerprint biometrics (18%), highlighting a growing trust in advanced technologies.

“Fraudsters continue to zero in on the most vulnerable links in the consumer journey. As fraud tactics become more sophisticated through AI technologies such as deepfakes, consumers are increasingly reliant on businesses to protect them across their entire digital experience, making robust safeguards critical at every stage,” added Sin. “To effectively combat fraud threats – particularly identity theft, one of the most prevalent risks in Hong Kong according to our data – the traditional single-layered approach is no longer sufficient. Businesses must adopt a multi-layered strategy that combines strong and accurate authentication, specialised deepfake detection and reliable identity document verification from the outset. These measures, together with effective device validation and network intelligence, are essential to protecting consumers, strengthening trust and ultimately fostering a safer, more resilient digital economy today.”    

TransUnion came to its conclusions about digital fraud based on intelligence from its array of TransUnion fraud prevention solutions. To learn more about how TransUnion fraud prevention solutions can help businesses avoid fraud and prevent fraud losses, click here.

Specific country and regional data in the report includes the Botswana, Brazil, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Hong Kong, India, Kenya, Mexico, Namibia, Nicaragua, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom, the United States and Zambia. Download the TransUnion H1 2026 Update to the Top Fraud Trends Report for more information and insights about the global fraud trends.

¹ Suspected digital fraud attempts reflect those which TransUnion clients determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon client investigation, or 4) a corporate policy violation upon client investigation. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represent every country worldwide and not just the select countries and regions.

² Info.gov.hk: Law and order situation in Hong Kong in 2025 (with photos)

³ Info.gov.hk: Remarks by the Secretary for Security after attending the Fight Crime Committee meeting (Chinese only) (with video)

⁴ TransUnion surveyed 1,000 consumers in Hong Kong from Nov. 20 to Dec. 8, 2025 as part of the global survey of 12,730 consumers in 18 countries and regions.

⁵ Based on the exchange rate on Dec. 29, 2025 when calculated for the report.

⁶ Anti-Deception Coordination Centre: Caution: Three Tricks Employed by Scammers Posing as CMHK Staff

A new study by TransUnion (NYSE:TU) challenges conventional perceptions of Hong Kong gig workers, revealing them to be responsible credit-active, credit-worthy consumers who require a different approach to risk assessment. Conducted in January 2026 among 500 gig workers across various industries, the study explores the scale and economic role of gig workers in Hong Kong and highlights opportunities for lenders to engage this growing segment.

The gig economy describes a work environment where individuals take on part-time, freelance or project-based jobs to earn an income, or extra income. Recently, the term has become closely associated with digital platforms that connect service providers directly to customers for tasks like delivery and ride-hailing.¹

The study, “The Gig Economy in Hong Kong: Rethinking Credit Risk, Inclusion, and Market Opportunity”, to be presented at TransUnion’s annual 2026 Hong Kong Financial Services Summit, found that gig workers make up approximately 13% of Hong Kong’s workforce, with nearly nine in ten (89%) earning a salary or hourly wage from full-time employment in addition to their gig income. One in five (20%) gig workers earn at least half the median household income in 2025 (over HK$10,000 per month)² through gig platforms. This workforce is predominantly Millennial (47%) and Gen X and older (31%)³, with a slight male majority (53%).

“Gig workers are a material and growing borrower segment who are often mistakenly perceived as having riskier, volatile income trends and inconsistent payment behaviours,” said Weihan Sun, senior director of research and consulting for Asia Pacific at TransUnion. “They face significantly higher friction, such as higher interest rates, lower credit limits and process complexity during credit applications as gig income is often excluded from formal assessments – but our findings show that perceptions about these consumers may be misplaced.”

Gig Workers Are Not Inherently Higher Risk

The study reveals that gig workers’ repayment behaviour aligns closely with the broader market, with no evidence of structurally higher risk. Among surveyed gig workers, 95% reported being in the prime and above⁴ credit risk tiers, compared to 90% of the general credit-active population. Their repayment behavior is also comparable to the broader market, with 82% meeting their payment obligations without difficulty, compared to 80% of the general population who said the same.

Chart 1: Hong Kong Gig Workers’ Credit Repayment Behaviour Compared to All in Hong Kong

Source: TransUnion Gig Economy Survey Hong Kong 2026

TransUnion Consumer Pulse Study Q1-Q4 2025

“This finding underscores that gig workers’ credit profiles and repayment behaviour are broadly consistent with the rest of the Hong Kong market,” said Sun. “This suggests that outcomes are more closely linked to income and borrowers’ individual characteristics than employment type alone.”

Gig Workers’ Appetite for Credit Exceeds the Broader Market, Despite Application Challenges

Gig workers demonstrate strong demand for credit, with 32% applying for new credit or refinancing in the past six months and 37% planning to do so in the next 12 months, compared to 30% of all credit-active consumers who have similar plans. They also exhibit higher uptake of several mainstream credit products: 28% hold mortgages (compared to 15% of the general population) and 22% have personal loans (compared to 9% of the general population). Notably, 9% of gig workers have auto loans, far exceeding the 0.3% observed across all credit-active consumers, likely because so many gig workers participate in transportation-based services.

Chart 2: Credit Products Held by Gig Workers, Compared to Total Population

Source: TransUnion Gig Economy Survey Hong Kong 2026

TransUnion Credit Information Services consumer credit database

However, despite their active participation in the credit market, gig workers face significant barriers when applying for new products. Across generations – Gen Z (44%), Millennials (48%) and Gen X and older (46%) – almost one in two reported difficulties applying for credit. Their challenges fall into two main categories. Under process-related barriers, nearly half (45%) cite unfavourable pricing and 41% point to complex application procedures. Under documentation-related constraints, 36% report being unable to provide required documentation such as pay slips, and 31% say fluctuating income led to questions or rejection.

“While gig workers show strong demand for credit products, the study indicates that many are not served to their full potential by lenders. This is despite the fact that a large share of gig workers already hold credit products and demonstrate positive repayment behaviours that are mostly in line with the performance of credit‑active consumers,” said Sun.

Gig Work Is Becoming a Durable Income Component

While often viewed as a temporary solution, gig work is increasingly becoming a sustained part of household financial planning and should be included in lenders’ credit risk and financial inclusion strategies. With 72% of gig workers not planning to leave this type of work in the near term, nearly half (44%) of surveyed gig workers plan to maintain their current gig hours, with almost one in five (18%) even intending to grow or expand their participation in the gig economy.

Workers value the flexibility (65% citing this as a benefit), earning potential (35%), and enjoyment of gig work (31%) the most. However, challenges remain, with reasons for low satisfaction with this earnings strategy including 43% feeling they do not earn enough, 33% reporting insufficient work opportunities, and 29% saying they must work excessively to cover expenses.

“With the continued growth of the digital economy, and ongoing needs to cope with high cost of living, gig workers represent a consistently expanding and high-potential borrower segment. The latest TransUnion study shows that many of these consumers are already credit-active and credit-worthy rather than inherently high risk,” said Sun.

“As gig work has become an ongoing supplementary income source for many, the wider credit industry has an opportunity to rethink how these consumers are evaluated and to broaden credit inclusion by refining how non-traditional income is assessed within existing risk and process frameworks. Adapting to consumers’ evolving profiles by including alternative data, for example, could better meet the needs of more Hong Kong consumers while driving sustainable, long-term growth for lenders,” he concluded.

¹ Office of the Government Economist: An introduction to the gig economy

² Census and Statistics Department: Report on Annual Earnings and Hours Survey

³ Generations are defined as follows: Gen Z, born 1995–2004; Millennials, born 1980–1994; Gen X, born 1965–1979; and Baby Boomers, born 1944–1964 

⁴TransUnion CreditVision® risk score: super prime = AA; prime plus = BB; prime = CC; near prime = DD to HH; subprime = II to JJ

Global information and insights company and Hong Kong’s leading credit reference agency, TransUnion (NYSE: TRU), today announced the launch of Money Lender Data Hub. The new platform supports the Hong Kong government’s mid-March initiatives to strengthen consumer protection and financial stability through enhanced regulation of the money lender sector. This one-stop solution – the first initiative launched by a credit referencing agency – is set to promote and facilitate broader participation of licensed money lenders in the Credit Data Smart (CDS), ultimately fostering a more resilient financial ecosystem in Hong Kong.

The Money Lender Data Hub is thoughtfully developed to bring meaningful value to financial institutions, consumers and the wider industry. It aligns with the consultation conclusions issued by the Financial Services and the Treasury Bureau (FSTB), which require all money lenders to submit borrowers' credit information to the CDS regularly and to obtain consumer credit data from the system once they reach specified business scales. By improving the completeness of consumer credit data in CDS, financial institutions can make more informed credit decisions for risk management, while consumers gain a more accurate representation in the marketplace to responsibly access the financial services they need. This marks an important step forward in strengthening Hong Kong’s credit industry and further supports the city’s longstanding position as an international financial centre.

“As Hong Kong’s pioneering credit referencing agency for over 40 years, TransUnion has continually evolved alongside market and regulatory developments to build a resilient and inclusive credit ecosystem. Since the launch of CDS, we have remained committed to ensuring a smooth transition and providing ongoing support for market operations, all aimed at developing a comprehensive and robust consumer credit database,” said Marie Claire Lim Moore, Asia-Pacific Regional President and Hong Kong CEO at TransUnion. “Recognising the needs of money lenders, especially smaller ones, TransUnion is leveraging our deep local experience and knowledge to introduce the first one-stop solution in market with enhanced cost efficiency – Money Lender Data Hub, enabling wider industry participation and contributing to the long-term financial stability of Hong Kong.”

As a long-standing trusted partner for credit providers, TransUnion understands the key considerations for money lenders, including those with smaller-scale operations, to participate in CDS, such as resource readiness, technology expertise, industry know-how and data security. In response, Money Lender Data Hub serves as a comprehensive, 24/7 hassle-free solution that enables money lenders to engage with CDS in a compliant and cost-effective manner. It provides end-to-end support that covers onboarding, independent assessment, data validation, secure uploads and transmissions to CDS, culminating in the receipt of a lite consumer credit report for effective decision-making.

Key features of Money Lender Data Hub include:

• A solution that meets all compliance standards: Money Lender Data Hub is the first solution that enables money lenders to seamlessly onboard and contribute data to CDS through an established, streamlined channel while ensuring full compliance with local laws and regulations

• Automated flow and hassle-free end-to-end support: The user-friendly platform features highly automated processes, supported by ongoing training, operational assistance and professional consultation, reducing the need of money lenders for additional manpower or system development costs

• Assured data security and integrity: Leveraging TransUnion’s global capability as a data expert, the solution applies best-in-class data security controls to maintain accuracy and security through rigorous cleansing, processing and governance, safeguarding data integrity end-to-end

• Empowered credit decisioning: Tailored to money lenders’ specific business needs, the solution offers flexibility to access lite consumer credit reports, delivering reliable and actionable insights for informed credit decisioning

Commenting on the solution, Devon Sin, Interim Managing Director of TransUnion Credit Information Services, said, “We are excited about the transformative impact Money Lender Data Hub will bring to CDS and Hong Kong’s credit ecosystem, helping smaller money lenders overcome common challenges in joining CDS. This data-driven innovation will further strengthen the completeness of the credit database, supporting more responsible credit access, usage and management for both credit providers and consumers. Enhanced data consolidation and transparency will also improve fraud detection among consumers by enabling earlier identification of suspicious activities. Together, these advancements form a solid and trusted foundation for sustainable economic growth and reinforce the city’s position as a leading international financial centre.”

With three decades of experience in financial services, Tim has a strong history of shaping strategies and driving growth across multiple markets. During his career, he spent over 20 years with HSBC across Hong Kong, the United Kingdom, Korea, Taiwan and Malta. Most recently, he held the position of Market Leader for Hong Kong, Korea and Taiwan at PayPal, where he drove merchant growth and enhanced seamless payment experiences for consumers. Complementing his professional accomplishments, Tim holds a Master of Engineering in Chemical Engineering from Imperial College London and a Bachelor of Science in Finance from the University of Manchester.

Drawing on his leadership experience in digital payments, Tim’s knowledge of customer journeys, payment ecosystems, FinTech innovation, and business enablement positions him well to spearhead the adoption of TransUnion’s data‑driven solutions as the company expands beyond core credit to provide broader identity-based insights. TransUnion will continue to empower financial institutions, businesses and consumers with trusted data and actionable insights through broader industry collaboration to promote greater financial inclusion and stability.

“Tim joins us at a transformative moment for TransUnion Hong Kong as we continue to demonstrate our leading stewardship of identity-based insights in supporting a healthy and sustainable financial ecosystem for the city,” said Marie Claire Lim Moore, Asia-Pacific Regional President and Hong Kong CEO at TransUnion. “Tim’s proven track record of expertise in digitalisation, innovation and multi‑market leadership will sharpen our go-to-market execution and position us to capture emerging growth opportunities. With his appointment, TransUnion is well placed to advance our ‘Information for Good’ mission, reinforcing market resilience and strengthening Hong Kong’s position as an international finance centre, as we continue to serve as the trusted information and insights partner in the market.”

Commenting on his appointment, Tim said: “Having worked extensively across diverse markets, I share TransUnion’s vision of combining global capabilities with meaningful local expertise to deliver trusted, data‑driven solutions for today’s dynamic financial ecosystem. As the industry continues to evolve, I look forward to contributing my expertise and experience to support TransUnion with an even more comprehensive lens on the ecosystem and operations of financial institutions, supporting responsible innovation and helping individuals, businesses and communities thrive across Hong Kong and the broader region.”

Hong Kong’s consumer credit market remained resilient with growth momentum anchored in secured lending in Q4 2025, as both mortgage and auto loan portfolios expanded. Credit card balances rose on the back of higher utilisation, with retail sales in Hong Kong recording continued growth over the second half of the year¹.

These insights and others are shared in the TransUnion (NYSE: TRU) Hong Kong Industry Insights Report for Q4 2025². The report further showed that while consumers held fewer credit products, they used those existing products more actively, placing greater emphasis on product fit, pricing and ongoing engagement. Market growth across categories was shaped less by new account acquisitions (supply) and more by consumers’ needs and priorities (demand).

Mortgage Market Shows Clear Signs of Rebound

The mortgage market displayed early recovery signals in Q4 2025, supported by the current low Hong Kong Monetary Authority base rate. The number of active mortgage accounts increased 3.6% year-over-year (YoY), reflecting a recovering housing market and improving borrower confidence. Origination volumes during Q3 2025³ jumped 44.1% YoY, off relatively low volumes in the corresponding 2024 quarter, indicating a meaningful re‑acceleration in new lending. This is supported by data from Centaline Property that shows the number of private primary residence transactions more than doubled YoY during Q3 2025, and that the number of private secondary residential transaction increased by 55% YoY⁴.

Despite overall growth, mortgage lending remained conservatively positioned, with low-risk super prime⁵ consumers holding 67.2% of all mortgage accounts, slightly higher than the previous year. Higher‑risk exposure stayed minimal.

Among generational cohorts, the greatest growth in originations was among Gen Z⁶ and Baby Boomer consumers, at 1.6% and 5.7% YoY, respectively. Originations by Millennial and Gen X consumers declined by 5.9% and 1.4% YoY, respectively.

“Mortgage activity is recovering in a healthy and disciplined way and is likely to see further activity based on improved affordability as a result of the Hong Kong Monetary Authority’s current lower base rate environment. Lenders could benefit from predicting their customers’ needs for a new mortgage or a refinance activity by better understanding shifts in holistic consumer repayment, leveraging and borrowing behaviours.” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion. 

Auto Loan Growth Driven by Wider Borrower Participation

The auto loan sector continued to expand, with originations during Q3 2025 increasing 28.2% YoY, reflecting improved demand for vehicle financing. This was likely driven by the Hong Kong government’s One-for-One Replacement Scheme⁷ which is currently set to end on March 31, 2026, in support of its target of ceasing new registrations of fuel-propelled cars, including hybrid vehicles, by 2035 or earlier⁸. The number of electric vehicles purchased during Q3 2025 was nearly double the number purchased in the same quarter in 2024⁹.

Although super prime borrowers still dominate new auto loans (51.7% of originations), their share declined slightly, down from 53.6% in the prior year, as more near prime and subprime consumers entered the market – near prime originations increased from 10.9% to 14.7% and subprime originations increase from 1.0% to 2.9%. These increases led to smaller average new loan values and reinforce the importance of risk based pricing and tight portfolio monitoring.

The total number of open auto accounts grew 21.8% YoY during Q4 2025, while the number of consumers carrying an auto loan increased 22.5% YoY. Outstanding auto loan balances rose 14.8% YoY, even as the average balance per consumer fell 6.1% YoY, confirming that expansion is being driven by both increased participation and balance growth.

“The auto loan market continued to scale as more consumers felt confident opening loans to purchase vehicles — primarily fuelled by government support. While the latest 2026-27 Budget has announced the conclusion of the One-for-One Replacement Scheme, this may further stimulate market demand in the first quarter of 2026, and future growth in auto loans will depend on the introduction of potential new incentives,” said Sun.

Credit Card Growth Reflects Higher Utilisation and Portfolio Consolidation

The credit card market showed utilisation‑led balance growth in the context of consistently growing retail sales, which recorded YoY increases of 5.3%, 4.4% and 5.1% in October, November and December 2025¹. While the number of active credit card accounts declined modestly by 1.5% YoY, outstanding balances rose by 2.5% YoY. Consumers’ average credit limits fell slightly by 3.4% YoY, largely due to the roll‑off of closed or inactive accounts rather than broad-based tightening by card issuers.

The number of consumers with active credit card accounts and those carrying balances increased by 0.57% and 0.81% YoY, respectively, highlighting deeper engagement with preferred card products.

“Top‑of‑wallet relevance has never been more critical for Hong Kong card issuers,” Sun said. “Balance growth is increasingly determined by whether a card is central to a consumer’s everyday spend, rather than by the number of accounts they hold. Lenders can maintain their top-of-wallet position through proactive strategies designed to encourage consumer loyalty, especially as their needs change with economic cycles.”

Personal Loans Show Steady, Risk‑Segmented Expansion

The unsecured personal loans market recorded modest growth across accounts, balances and active borrowers. The number of accounts rose 0.9% YoY and outstanding balances increased 2.9% YoY in Q4 2025. Average balances per consumer climbed 1.8% YoY, indicating steady demand for instalment credit without signs of rapid acceleration.

Origination patterns in Q3 2025 continued to lean toward near prime and subprime borrowers, who accounted for 47.5% and 28.3% of originations, respectively. Average new account balances rose 7.5% YoY in Q4 2025, as larger loan amounts indicated widening appetite from traditional banks to offer this product.

“The unsecured personal loans market is expanding in a measured way, with higher‑risk tiers driving much of the growth,” Sun said. “Disciplined risk‑based pricing and close monitoring of subprime performance remains important, particularly as higher average loan sizes in new originations increase potential loss exposure.”

Q4 2025 Metrics for Consumer Credit Products in Hong Kong

i. Originations are viewed one quarter in arrears to account for reporting lag.                 

ii. Serious-delinquency rates are 90 or more days past due for credit cards and 60 or more days past due for all other credit products.

iii. Delinquency data are reported at an account-level up to 150 days past due, excludes 150+ days past due and charge-offs.

iv. Source: HKMA Residential Mortgage Survey

Despite some structural shifts, credit quality remains resilient across the system, with delinquency rates stable or improving across most products. Where pressure exists, it remains limited and concentrated in subprime segments.

“Hong Kong is entering a phase of optimisation rather than broad-based expansion,” said Sun. “We saw lenders ending 2025 by optimising their portfolios, positioning them well for growth in 2026. Going forward, they will need to focus on strategic capital allocation, defending top‑of‑wallet positions and maintaining disciplined risk management as portfolios rebalance.”

¹ Trading Economics: Hong Kong Retail Sales YoY

² TransUnion's last Industry Insights Report for Hong Kong in 2025 is based on data from the Credit Reference Platform under Credit Data Smart (CDS), following the full migration by the end of November 2024. Future reports will continue to leverage data from this source

³ Origination figures are reported three months in arrears due to reporting lag

⁴ Centaline Property: Statistics of Properties Transactions in Land Registry

⁵ TransUnion CreditVision® risk score: Subprime = JJ to II; Near prime = HH to DD; Prime = CC; Prime plus = BB; Super prime = AA

⁶ Generations are defined as follows: Gen Z, born 1995–2004; Millennials, born 1980–1994; Gen X, born 1965–1979; and Baby Boomers, born 1944–1964 

⁷ Transport Department – The Government of Hong Kong Special Administrative Region: First Registration Tax Concessions for Electric Vehicles 

⁸ News.gov.hk: Electric vehicles roadmap updated

⁹ Hong Kong Electric Vehicle Database: Hong Kong Electric Vehicle Statistics 2024 and Hong Kong Electric Vehicle Statistics 2025, total for Q3 2024 = 5,582, total for Q3 2025 = 9,125

• Despite labour market challenges, over half of Hong Kong consumers (55%) reported stable earnings over the past three months
• Cost of living remained the major concern, with consumers prioritising emergency funds and retirement savings while planning to tighten discretionary spending ahead of the upcoming holiday season
• Consumer sentiment toward credit changed in Q4 2025, with fewer viewing it as important for achieving financial goals

Global information and insights company and Hong Kong’s leading credit reference agency, TransUnion (NYSE: TRU), today released its Consumer Pulse Study for Q4 2025. The report revealed that despite ongoing labour market pressures, Hong Kong households continued to be resilient, with stable incomes underpinning cautious optimism and disciplined financial management. At the same time, consumers’ attitudes toward credit shifted amid an evolving macro-economic backdrop, with borrowing no longer regarded as a lifeline but a considered choice.

Stable incomes persisted despite labour market headwinds

While Hong Kong’s labour market came under pressure with unemployment hitting a three‑year high¹ and youth joblessness elevated to 8% by the end of Q3 this year², most families kept earnings intact in Q4 2025. Over half (55%) of Hong Kong consumers reported that their income stayed the same over the past three months, up three percentage points from last year. The proportion of surveyed respondents experiencing income decline over the same period eased to 12%, down from 14% a year ago. This pattern suggested that household earnings have flattened rather than fallen, indicating income stability among most Hong Kong families.

Meanwhile, Hong Kong’s broader economy held steady, with GDP expanding at 3% or more in each of the first three quarters of 2025³. In this two‑speed economy, marked by solid output alongside a softer job market, consumers remained relatively confident about income prospects heading into 2026. A strong majority (87%) expected their income to increase or stay stable over the next 12 months, including nearly half (43%) who anticipated growth. These findings underscore that Hong Kong households are weathering economic uncertainties better than the headlines imply.

Consumers approaching holiday season with financial discipline and cautious confidence

In Q4 2025, income stability eased financial pressure for many households. Only a small minority (12%) expected that they would be unable to pay at least one of their current bills and loans in full, down from 20% a year ago and the lowest level in five quarters. This significant improvement aligned with a modest rise in optimism, as 54% of respondents expressed confidence in their financial outlook for the year ahead, up two percentage points from the same period last year. It signals a slight but clear shift that fewer households face immediate financial stress and are gradually becoming more forward‑looking.

However, the cost of living remains the primary pressure point for consumers. Six in ten (61%) respondents identified inflation on everyday goods as their top worry affecting household finances over the next six months, closely followed by job stability (60%). Notably, 42% said they felt moderately to very concerned about the impact of current or potential international trade tariffs on their household finances, while 48% pointed to rising product prices as the primary impact of tariffs.

In response to this mixed sentiment, consumers adopted a pragmatic approach to spending through Q3 2025 and carried it into year-end, reflecting greater financial discipline and heightened risk awareness. Over the past three months, 38% of consumers prioritised building emergency funds, while 20% increased their retirement savings. Looking ahead to the holiday season in coming months, only one in four (25%) planned to increase discretionary personal spending on dining, travel and entertainment, while 41% intended to tighten. This prudent management allows Hong Kong consumers to manage the tension between macro easing (positive income outlook) and micro strain (cost of living), while remaining quietly confident in their ability to navigate the future.

“With a majority of Hong Kong consumers reporting income stability despite economic headwinds such as rising unemployment, many households remain relatively optimistic,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion. “Balancing macro easing and micro strain, consumers are staying grounded and are reinforcing their resilience by strengthening financial buffers and exercising caution in near-term spending. The dual focus on disciplined saving and prudent consumption, particularly ahead of the holiday season, reflects a pragmatic approach to navigating potential inflationary pressures as households prepare for the year ahead.”

Credit sentiment shifted among consumers, with fewer viewing it as important for achieving financial goals

The study also revealed a notable change in consumer attitudes toward credit in Q4 2025. Less than half (48%) agreed that access to credit and lending products is very or extremely important for achieving their financial goals, down from 53% in Q4 2024. This shift was most evident among Gen Z⁴, where the share declined sharply from 70% to 54%.

Additionally, confidence in approval prospects also weakened among the youngest generation surveyed, with just 61% believing that they would be approved for a credit or lending product when needed, representing a notable 15 percentage point drop year-on-year (YoY). This underscores how higher borrowing costs and tighter employment conditions may have reshaped consumer sentiment toward credit, especially among young consumers.

“According to the latest Consumer Pulse Study, fewer consumers see credit as essential to their financial goals. Credit is now considered a calculated choice rather than a lifeline, shifting from necessity to negotiation. To better serve these consumers, lenders should focus on delivering more personalised solutions tailored to diverse needs, while maintaining streamlined processes and accessible engagement channels that enhance the overall experience,” said Sun. “Equally important is ongoing education on proactive credit monitoring to help consumers better understand their financial standing and support access, especially as younger generations show declining confidence in obtaining credit when needed. After all, when managed responsibly, credit remains a powerful tool for financial flexibility amid uncertainties and unlocking more opportunities across life stages.”

TransUnion’s Q4 2025 Consumer Pulse Study consisted of a survey of 979 adults 18 years of age and older residing in Hong Kong between 25 September and 6 October 2025. This quarterly study examines shifting consumer attitudes and behaviours based on the dynamics of income, debt, and identity theft. For more information, please view the full Consumer Pulse Study Q4 2025 Report.

¹ Census and Statistics Department: Table 210-06101: Statistics on labour force, employment, unemployment and underemployment

² Census and Statistics Department: Table 210-06103: Unemployment rate and underemployment rate by age and sex

³ Census and Statistics Department: Table 310-31001: Gross Domestic Product (GDP), implicit price deflator of GDP and per capita GDP

⁴ Generations are defined in this research as follows: Gen Z, 18–26 years old; Millennials, 27–42 years old; Gen X, 43–58 years old; and Baby   Boomers, age 59 and above
 

Consumers adapt as fraud tactics focus on digital devices

Data from TransUnion’s survey, conducted between September and October 2025 among 979 Hong Kong adults, revealed that fraudsters are targeting digital devices in consumers’ hands. Among those who said they were targeted with online, email, phone call or text message fraud attempts in the last three months (37%), vishing (fraudulent phone calls meant to trick consumers into revealing data) and smishing (fraudulent text messages with the same intent of obtaining personal data) were the leading types of fraud reported, each cited by 36% of surveyed respondents. Meanwhile phishing (fraudulent emails, websites, social posts, QR codes, etc. meant to steal data) was also prevalent at 34%.

Despite these threats, the percentage of Hong Kong consumers who said they were targeted by an online, email, phone, or text messaging scam during the same period fell to 37%, down from 44% a year ago. Furthermore, only a small minority (6%) reported falling victim to such scams recently, likely driven by greater public awareness and stronger frontline fraud filters.

In addition, Hong Kong consumers appeared to take more action in response to data breaches. Among those who said they were notified in the past three months that details about their identities or online accounts had been stolen in a data breach (17%), more than one-third (34%) reported checking their account for unauthorised activity while another 34% said they changed the password of the affected account, marking increases of 11 and five percentage points respectively from a year ago. Slightly more than a quarter (26%) went further by reporting closing the affected account or reviewing their credit report for fraudulent activities like a new credit card being opened under their name, both up from 23% last year, highlighting an improvement in self‑management.

Gaps in regular security maintenance leave holiday shopping exposed

However, despite increased awareness about being targeted with fraud and more post-incident actions, proactive digital protection remained inconsistent, leaving consumers exposed to the ever-evolving fraud threats. Close to a third (29%) of respondents reported that they had not taken any action in response to cybersecurity concerns over the past two months. Among those who stayed idle, 43% said they took no action because they did not want to spend the time, staggeringly up from 25% a year ago, while almost a quarter (24%) were unsure what actions to take.

This inconsistency is of particular concern as Hong Kong consumers continue to show a strong appetite for digital convenience, especially in the run‑up to the holiday season. Close to two-thirds (61%) of respondents plan to do half or more of their holiday shopping online, highlighting the popularity of e‑commerce. Additionally, most consumers (82%) also indicated a preference for using a wider range of electronic payment methods (credit card, debit card, mobile payment app and buy now, pay later, which is known as interest-free instalment payment plans in Hong Kong) during the holiday shopping season. As fraudsters increasingly exploit vulnerabilities in digital devices, this growing reliance on cashless transactions underscores the urgent need for more consistent, proactive security measures to stay ahead of emerging threats.

“Hong Kong consumers are increasingly alert to fraud and know better how to react quickly after an incident, which is an encouraging step forward,” said Devon Sin, chief product officer at TransUnion Asia Pacific. “However, awareness alone does not close the protection gap. Consistent, proactive security maintenance to address cybersecurity risks before they arise is essential to keeping fraudsters at bay. As the holiday season typically brings a surge in digital activities, ongoing vigilance and the use of trusted protection tools remain key for consumers to stay secure. Ultimately, security is not a one-time effort, it is an ongoing commitment.”

Insights from the TransUnion (NYSE: TRU) Hong Kong Industry Insights Report for Q3 2025¹ show that the volume of credit card originations (new accounts opened) declined by 23.5% year-over-year (YoY) in the second quarter of 2025², with volumes down across all generations and all risk categories apart from subprime³. This was the most significant drop in new credit card originations since the COVID-19 pandemic and follows a 13.0% YoY decline in enquiries in the quarter.

Credit card originations among Gen Z⁴ consumers – who have for years seen significant YoY card growth as their over-18 population numbers increased – decreased by 11.1% YoY. Originations among Millennials decreased 25.8% YoY, and Gen X originations were down by 26.1%. Across the risk tier distribution, subprime was the only tier that recorded a marginal increase in volume (+0.5%), albeit off a low base of the total population accounting for just 1.1% of total originations. Within the subprime tier, growth was driven by money lender card issuers, where volume increased 39.4% YoY. Money lenders have a greater risk appetite than traditional banks and provide an alternative when the market is experiencing a gap between demand and supply among higher-risk borrowers.

This cooling in the Hong Kong credit card market has likely been influenced by the unemployment rate being at its highest level since August 2022, at 3.9%⁵ in Q3 2025, with the labour market affected by economic restructuring and weaker hiring in the construction, finance and social sectors. Graduates entering the market have been the most affected, with 8% of young consumers aged 20 to 29 unemployed – the highest level this year, on an upward trend from 5.4% in January 2025⁶.

In contrast to the slowdown in card market activity, the economy experienced a more positive backdrop of softer food and durable goods prices and stronger GDP growth of 3.8%⁷ YoY. This growth was supported by strong visitor arrivals (up 13.9%)⁸ and robust growth in food, beverage and valuable gift categories⁹, along with steady leasing activity and moderate rental increases¹⁰.

In addition to these positive trends, S&P Global Market Intelligence¹¹ forecasts a gradual decline in the unemployment rate in 2026, potentially dropping to 3.44% on a seasonally-adjusted basis by the end of the year, which could spur a recovery in credit card demand. S&P Global Market Intelligence also anticipates positive GDP growth through 2026 and a modest rebound in retail spending next year after resuming YoY growth in the second quarter of 2025.

The anticipated improvement in the economic environment, as well as a 7% YoY increase in enquiries (credit demand) observed in Q3 2025, may help drive an increase in new credit activity in the last quarter of 2025. This is supported by findings in the Q3 2025 Hong Kong Consumer Pulse Study, where 48% of surveyed consumers said that they plan to apply for new credit or refinance existing credit within the next year – a 10% YoY increase.

“We have seen a sharp contraction in credit card originations as consumer demand has softened and lenders have shifted their strategies in response to some challenging economic indicators. However, pockets of opportunity remain for lenders who are positioned to respond to Hong Kong’s anticipated moderate sustained growth in the coming months and through the upcoming peak shopping seasons,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion. “Gradual improvements in consumer confidence, along with improved business sentiment, will likely support a rebound in demand for credit cards among consumers, along with greater appetite from lenders who wish to resume growth.”

Personal Loans’ Growth Skews Younger and More Digital

Lenders have expanded personal loan originations for three consecutive quarters, with younger borrowers driving higher activity. Total personal loan originations increased by 1.2% YoY in Q2 2025, with the average new loan value remaining steady. However, younger borrowers drove the majority of the activity, with originations among Gen Z consumers up by 14.0% YoY and Millennials up 1.3%. Gen Z borrowers accounted for 16.7% of personal loan originations, up from 14.7% one year ago, indicating their growing preference for this product as well as the continued expansion in the number of Gen Z consumers who are of credit-eligible age (18+).

Amid the mixed macro-economic conditions, traditional lenders remained cautious, with personal loan originations from traditional banks declining by 5.0% YoY with those from money lenders having grown marginally by 1.0%. However, personal loan originations from digital banks grew by 35.0% YoY, albeit off a small base. Digital banks accounted for 7.7% of personal loan originations during the quarter, up from 5.8% one year ago.

TransUnion’s recent study of wallet diversity among Hong Kong consumers found that consumers intending to expand the credit products they held beyond just credit cards were most likely to open new personal loans for that first additional product. The study also found that 58% of consumers who opened a personal loan as their first non-credit card product did so with a lender who was already represented in their wallet.

“Younger consumers are showing more interest in personal loans as their preferred product for addressing short-term credit needs for larger purchases, such as new appliances, or even for home improvements as Hong Kong’s property market becomes more accessible. Digital banks are responding to this demand, with their streamlined digital experiences addressing young consumers’ needs and preferences,” said Sun. “This trend also reflects a potential shift away from Hong Kong’s card-dominated credit market, as consumers increasingly understand that they can benefit from participating in diverse credit portfolios that best suit their life stage and financial needs. The key for sustainable growth for the Hong Kong credit ecosystem is to identify consumer preferences; address those needs responsibly; and help them manage through their life stages proactively."

Q3 2025 Metrics for Consumer Credit Products in Hong Kong 

i. Originations are viewed one quarter in arrears to account for reporting lag.         

ii. Serious-delinquency rates are 90 or more days past due for credit cards and 60 or more days past due for all other credit products.

iii. Delinquency data are reported at an account-level up to 150 days past due, excludes 150+ days past due and charge-offs.

“In the coming months, lenders in Hong Kong seeking to expand their portfolios can focus on more considered segmentation to identify and engage with resilient consumers. Previous experience shows that neither ‘blanket’ acquisition campaigns aimed at all consumers regardless of risk tier or need, nor shutting down credit access in times of economic headwinds, contribute positively to growth – a more considered and personalised approach will yield more profitable and sustainable results,” said Sun.

1 TransUnion's third Industry Insights Report for Hong Kong in 2025 is based on data from the Credit Reference Platform under Credit Data Smart (CDS), following the full migration by the end of November 2024. Future reports will continue to leverage data from this source

2 Origination figures are reported three months in arrears due to reporting lag

3 TransUnion CreditVision® risk score: Subprime = JJ to II; Near prime = HH to DD; Prime = CC; Prime plus = BB; Super prime = AA

4 Generations are defined as follows: Gen Z, born 1995–2004; Millennials, born 1980–1994; Gen X, born 1965–1979; and Baby Boomers, born 1944–1964 

5 Census and Statistics Department: Unemployment and underemployment statistics for July – September 2025 

6 Trading Economics: Hong Kong Youth Unemployment Rate

7 Hong Kong Economy: Latest Developments

8 CBRE: Hong Kong Figures – Retail Q3 2025

9 Government of the Hong Kong Special Administrative Region: Provisional Statistics of Retail Sales for September 2025

10 Midland Realty: Private residential rents rose further in June and are expected to reach a new peak in Q3 (only available in Traditional Chinese)

11 S&P Global Market Intelligence shared subscription-based data with TransUnion Hong Kong

• Hong Kong’s suspected digital fraud attempt rate was 2.7% in the first half of 2025
• The top three predominant causes of fraud losses identified by Hong Kong businesses were third-party fraud, account takeover, and scam or authorised fraud
• Retail exhibited the highest rate and year-on-year (YoY) rate increase in suspected digital fraud from Hong Kong among industries analysed, surpassing all other countries and regions in the study

Insights from the newly released TransUnion (NYSE: TRU) H2 2025 Update to the  Top Fraud Trends Report revealed that 2.7% of all attempted digital transactions where the consumer was in Hong Kong were suspected to be digital fraud¹ in the first half of 2025, lower than the global rate of 3.8%. Compared to a year ago in the first half of 2024, Hong Kong’s suspected digital fraud dropped from 3.8%, indicating positive progress in the city’s efforts to combat fraud.

Despite this improvement, fraud continues to pose significant financial risks to businesses in Hong Kong. According to a business survey conducted by TransUnion, which gathered insights from business leaders across six markets — Hong Kong, Canada, India, the Philippines, the United Kingdom and the United States, 200 Hong Kong respondents reported their companies lost an equivalent of 7.1% of annual revenues on average due to fraud in the past year, representing a total of HK$92 billion. In addition to financial losses, more than half (51%) of respondents said they were extremely or very concerned about the impact of fraud on their businesses, underscoring the continued importance of fraud prevention as a strategic priority.

Hong Kong businesses strengthen fraud defences, but confidence in fraud identification remains subdued

Hong Kong businesses are actively strengthening their defences against fraud. According to the same business survey, three quarters (75%) reported optimising their fraud detection models at least quarterly with 21% doing so monthly. Hong Kong also recorded the highest percentage of business leaders among surveyed markets reporting deploying large fraud operations teams with more than 20 analysts. However, these efforts did not fully translate into confidence, with only 56% of Hong Kong business leaders feeling extremely or very prepared to identify fraud attacks involving multiple channels, placing Hong Kong at the lowest confidence level in the study.

To dive deeper into the root causes of fraud losses, business leaders in Hong Kong were asked to identify the main contributors over the past year. Third-party fraud, involving the use of stolen identities to open accounts, was cited by 26% as the leading cause. This was followed by account takeover (22%), where unauthorised individuals take over someone’s online account, and scam or authorised fraud (18%), a dishonest scheme intended to deceive a person into giving up something of value. These findings indicated a strong prevalence of identity theft and unauthorised access.

Phone fraud emerged as a significant concern for both consumers and businesses

On the other hand, fraud also remained a persistent threat to consumers. According to TransUnion’s Consumer Pulse Study for Q2 2025, more than one-third (37%) of Hong Kong consumers reported being targeted by email, online, phone call, or text messaging fraud from February to May 2025, with 4% falling victim. Among those targeted, vishing (fraudulent phone calls meant to trick consumers into revealing data) was the most common scheme, affecting 32% of respondents.

Hong Kong business leaders have also acknowledged concerns around phone-related threats and reported actively monitoring associated risks, as reflected in TransUnion’s business survey. Close to 80% of business leaders expressed being extremely, very or moderately concerned about phones being compromised or taken over by fraudsters during the transmission of one-time passcodes. Similarly, 43% ranked phone number reputation (phone number attributes that may signal fraud such as type of phone, fraud history and identity linked to it) among their top three most important fraud prevention solutions, the highest among all surveyed markets.

“It is encouraging to see Hong Kong making progress in combating and preventing fraud, as highlighted in TransUnion’s latest Top Fraud Trends Report. However, as fraudsters continue to evolve and adapt, our data also showed that both businesses and consumers remain aware of increasingly sophisticated schemes such as identity-based fraud and phone-related scams,” said Devon Sin, chief product officer at TransUnion Asia Pacific. “To maintain vigilance, businesses must tailor their fraud strategies to local realities, striking the right balance across technology, processes and awareness to stay ahead of complex threats. At the same time, individuals should proactively safeguard and monitor their personal information through trusted tools to reduce vulnerability and stay ahead of evolving risks.”

Fraudsters shifted tactics to exploit vulnerabilities across different sectors

Compared to the first half of 2024, financial services demonstrated encouraging progress in fraud mitigation, with the suspected digital fraud rate for attempted transactions where the consumer was in Hong Kong declining by 21% YoY. The improvements were likely supported by the Hong Kong government's continued efforts in cyber defence and public education². However, fraudulent activities remain persistent in the retail industry — a reminder that fraudsters are constantly seeking vulnerabilities and will not hesitate to exploit emerging opportunities. Sustained vigilance across all industries remains essential.

In the first half of 2025, retail recorded the highest suspected digital fraud rate among industries analysed for transactions where the consumer was in Hong Kong at 19.4%, representing a sharp 155% YoY rate increase. This positioned Hong Kong with the highest suspected digital fraud rate and YoY rate increase in the retail sector among all markets analysed. This trend aligns with official data from the Hong Kong Police Force, which shows that the majority of online scams reported during the first half of 2025 were linked to online shopping and job advertisements³. The telecommunications sector recorded the second highest suspected digital fraud rate from Hong Kong at 8.9%, followed by the logistics sector at 7.9%, with notable YoY rate increases of 128% and 117% respectively.

When it comes to the consumer lifecycle, fraudsters targeted vulnerabilities at the early stages of the digital journey, particularly during account logins (such as login attempts and failed login events). The suspected digital fraud rate during this stage stood at 10.8%, more than double the global average of 4.3%, making it the riskiest stage within the digital journey. In contrast, the suspected digital fraud rate during account creation (3.8%) and financial transactions (0.3%) from Hong Kong remained below the global average, possibly reflecting the city’s stronger onboarding controls and robust payment security.

Suspected digital fraud rate from Hong Kong by industry, retail tops in rate and year-on-year change

 Source: TransUnion TruValidate™

"Fraudsters are highly adaptive. Even as awareness among businesses and consumers grows, cybercriminals continue to search for vulnerabilities across sectors and at every stage of the digital consumer lifecycle," added Sin. "Protecting the organisations and customers is non-negotiable. An enterprise-wide approach that leverages smarter fraud detection and breaks down fragmented systems is essential. Ultimately, strengthening each layer of defense and remaining agile to evolve as fast as fraudsters do will help businesses foster long-term resilience, minimise unnecessary customer friction and set the foundation for a more trusted digital economy."

TransUnion came to its conclusions about digital fraud and data breaches based on intelligence from its array of TransUnion fraud prevention solutions. Specific country and regional data in the report includes Botswana, Brazil, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Hong Kong, India, Kenya, Mexico, Namibia, Nicaragua, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom, the United States and Zambia. Download the TransUnion H2 2025 Update to the Top Fraud Trends Report for more information and insights about the global fraud trends.

1 The rate or percentage of suspected digital fraud attempts reflects those which TransUnion customers determined to meet one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represent every country worldwide and not just the selected countries and regions.

2 Hong Kong Monetary Authority: HKMA, HKPF and HKAB jointly announce new measures to strengthen the response to fraud and money laundering

3 HK Government Press Release: Remarks by Secretary for Security at media session after Fight Crime Committee meeting (with video) (only available in Traditional Chinese)

Insights from TransUnion’s (NYSE: TRU) Hong Kong Industry Insights Report for Q2 2025¹ show that the credit market experienced growth in personal loans and mortgage originations during the quarter, while credit card and revolving line activities declined significantly. These declines in new consumption-led products were likely driven by consistently elevated unemployment across the population, especially among younger consumers², while older cohorts appeared to shift their focus towards maintaining larger property loans.

Credit card originations during Q1 2025 declined by 17.9% year-over-year (YoY) while enquiries fell by 2.5%³. This signalled weaker demand and, more importantly, increased lender caution towards new card acquisitions. Due to lower originations, total open credit card accounts at the end of Q2 2025 fell 1.5% YoY.

From a borrower risk perspective, new card originations by subprime⁴ consumers rose 9.9% YoY, albeit from a low base and primarily driven by money lenders. All other risk tiers recorded double-digit decreases. A similar trend was observed in the existing credit portfolio, where the volume of cards held by subprime borrowers increased by 8.7% YoY – an unusual scenario in this typically risk-averse market.

“The growth in subprime cardholders may be an indication that lenders are seeing fewer high-quality prospects in the market,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion. “It might also reflect a shrinking pool of borrowers who meet the appetite of traditional lenders, which may warrant attention. At the same time, high credit card ownership among prime plus and super prime segments is further constraining growth opportunities for lenders.”

With growth opportunities narrowing among prime segments, attention is shifting to subprime borrowers. Delinquencies, measured as the percentage of accounts with 90 or more days past due (DPD), remained steadily low at 0.03%. However, the continued growth in new subprime accounts is worth closer monitoring, as these are more likely to carry higher risk of delinquencies in the future.

Delving more deeply into the slowdown in credit card growth, originations among Gen Z consumers⁵ declined by 1% YoY, with only money lenders showing YoY card growth among issuer types. This slowed new card activity among younger consumers was likely, in part, due to youth unemployment having reached a high of 6.8% in Q2 2025² – the highest since December 2022 – as recent graduates entered a saturated job market.

“Elevated youth unemployment is a leading indicator for what lenders can expect of credit market growth activity over the next six to 12 months,” Sun said. “Lenders should revisit their originations strategies in the coming months and identify growth opportunities among the younger generation, given the reduced participation and demand from Gen Z borrowers.”

Revolving lines growth slowed

Following significant growth during 2024, revolving line originations declined by 17.8% YoY in Q1 2025, signalling waning demand, likely brought about by subdued lender campaign activity due to climbing delinquencies. Account-level delinquencies (60+ DPD) were up 14 basis points (bps) YoY to 0.51%, while consumer-level delinquencies over the same period increased 26 bps to 1.06%.

Revolving lines are particularly popular among younger consumers because of their convenience, with quicker applications that enable immediate liquidity, and typically have smaller ticket sizes. Given the product concentration among younger borrowers, Hong Kong’s current youth unemployment situation has likely been a driver of slower growth in revolving lines.

This pullback has impacted the share of accounts issued by digital banks, who have been successful in attracting younger consumers in recent years. Originations by digital banks fell by 45.4% YoY in Q1 2025. Meanwhile, money lenders capitalised on opportunities for integration into e-wallets on online retail platforms, resulting in 44.4% YoY originations growth and reflecting a significant share shift in the second quarter.

In contrast, traditional banks, which do not participate significantly in this product, saw a 34.5% YoY growth in originations off a low base while targeting lower-risk, higher-ticket borrowers: digital banks’ typical revolving lines were between HK$5,000 and HK$8,000, while those offered by traditional banks are usually approximately HK$200,000.

“Revolving line growth by traditional banks is largely driven by consumers seeking flexible liquidity for unforeseen needs. These higher-value loans are typically opened with traditional banks that are more willing to extend larger credit limits. While consumers may not draw down on these loans immediately, they value having access for emergencies or investment opportunities,” Sun said. “Lenders looking to expand in this space should align risk-based pricing with their appetite and strengthen account management using data-driven early warning indicators. A comprehensive toolset that quickly surfaces shifts in risk and opportunity can support better acquisition strategies and inform decisions across credit limits, interest rates and payment terms.”

Mortgage market grew, reflecting increased consumer confidence

The slowdown in consumption-led credit originations for credit cards and revolving lines may be partly attributed to Hong Kong residents responding to policy changes that encourage property sales, such as stamp duty cuts, reduced transaction costs⁶, and the availability of fixed-rate mortgages. These incentives have prompted consumers to redirect their disposable income toward servicing mortgages or to home improvements.

In Q2 2025, mortgage origination volumes increased by 4.6% YoY, while the number of accounts increased by 3.3%, according to the Hong Kong Monetary Authority (HKMA)⁷. However, the average value of new mortgages declined by 9.5%, and total outstanding balances increased by just under 1%.

With thousands of new flats, many attractively priced, expected to be available during 2025, increased activity in the region’s property market is likely to improve consumer confidence.

Modest gains in personal loans

Personal loan originations grew by 2.1% YoY in Q1 2025 as lenders met increasing demand, with total account volumes and outstanding balances showing modest gains of 1.2% and 0.9% YoY, respectively. Among all personal loan accounts, subprime volume increased by 7.8%, likely suggesting greater appetite among higher-risk consumers seeking liquidity or aiming to diversify their wallets.

While lenders are taking on more risk by expanding access to personal loans, their strategy of offering lower value loans (average new loan value decreased by 2.0% YoY in Q1 2025) has contributed to improved delinquency performance: 60+ DPD account-level delinquencies fell by four bps to 0.84%, while consumer-level delinquencies over the same period improved by seven bps to 0.98%. This marks the third consecutive quarter of improvement, reinforcing lender confidence in further expansion.

“Lenders seeking to unlock more value among consumers who hold a single credit product should focus on deepening engagement through retention strategies and targeted cross-selling campaigns,” said Sun. “By embedding early default detection and monitoring tools into underwriting processes, lenders can proactively manage risks and strengthen portfolio resilience, laying the foundation for sustainable growth in a more diverse credit landscape.”

Q2 2025 Metrics for Major Consumer Credit Products in Hong Kong

 i. Originations are viewed one quarter in arrears to account for reporting lag. 

ii. Serious-delinquency rates are 90 or more days past due for credit cards and 60 or more days past due for all other credit products. 

iii. Delinquency data are reported at an account-level up to 150 days past due, excludes 150+ days past due and charge-offs.

iv. Mortgage data sourced from the HKMA

1 TransUnion's second Industry Insights Report for Hong Kong in 2025 is based on data from the Credit Reference Platform under Credit Data Smart (CDS), following the full migration by the end of November 2024. Future reports will continue to leverage data from this source

2 Census and Statistics Department: Table 210-06103 : Unemployment rate and underemployment rate by age and sex

3 Originations and enquiries are viewed one quarter in arrears to account for reporting lag

4 TransUnion CreditVision® risk score: Subprime = JJ to II; Near prime = HH to DD; Prime = CC; Prime plus = BB; Super prime = AA

5 Generations are defined as follows: Gen Z, born 1995–2004; Millennials, born 1980–1994; Gen X, born 1965–1979; and Baby Boomers, born 1944–1964 

6 info.gov.hk: Government welcomes passage of Stamp Duty (Amendment) Bill 2025

7 According to the Hong Kong Monetary Authority releases on mortgage data from April to June 2025

With 20 years of experience in the banking industry spanning both conventional and digital institutions, Devon brings a strong track record of integrating traditional banking with innovative solutions to enhance user experiences through customer-centric strategies. He joins TransUnion from ZA Bank, Hong Kong’s first digital bank, where he was a founding member and most recently served as the Alternate Chief Executive and General Manager of Business Banking and Lending. Prior to that, he also served in leadership roles at Standard Chartered Bank and DBS Bank. Devon holds a bachelor’s degree in International Business from the Business School of the Chinese University of Hong Kong (CUHK).

With a strong focus on innovation and customer empowerment, Devon’s expertise in digital transformation aligns seamlessly with TransUnion’s commitment to delivering cutting-edge, insight-driven products and solutions that expand financial opportunities for customers and consumers in a secure and trusted environment. Under his leadership, TransUnion will further advance its product proposition and analytics capabilities in Asia Pacific, reinforcing its role in promoting financial inclusion through data and insights across the region.

“We are pleased to welcome Devon at a pivotal time for Asia Pacific, marked by the post-Credit Data Smart (CDS) era in Hong Kong and a fast-growing economy in the Philippines,” said Marie Claire Lim Moore, Asia-Pacific Regional President and Hong Kong CEO at TransUnion. “As market dynamics shift, it is essential for TransUnion to scale our product, data and analytics capabilities by leveraging global expertise and advanced technologies to better serve customers and consumer. Devon’s unique perspective as a former customer and partner gives him an unparalleled understanding of how our solutions can effectively address evolving market needs. We are confident his leadership will be a strategic accelerator for our growth and further our mission of delivering Information for Good.”

Commenting on his appointment, Devon said: “It is a true honour to join TransUnion, a global leader with a strong focus on innovation, data integrity and empowering smarter decisions through actionable insights. This is an exciting time, as Asia Pacific undergoes rapid digitalisation and evolving consumer expectations. The demand for trusted, forward-looking credit and fraud solutions has never been more crucial. Having witnessed the meaningful impact of TransUnion’s proprietary data and technology in supporting financial inclusion and resilience, I am excited to expedite innovation to deliver even greater value to consumers and businesses. Together, we will strengthen the region’s financial ecosystem, foster deeper trust and unlock more secure, inclusive opportunities that benefit individuals, institutions and the broader economy.”

• Prevailing economic uncertainties prompted cautious income growth expectations across generations over the next 12 months
• Inflation of everyday goods, economic slowdown and job security were the top three concerns affecting household finances cited by consumers
• More consumers planned to apply for or refinance credit, but accessibility gaps remained especially for older cohorts

Global information and insights company and Hong Kong’s leading credit reference agency, TransUnion (NYSE: TRU), today released its Consumer Pulse Study for Q2 2025. The report revealed that financial confidence among Hong Kong consumers remained cautious and hard-earned. In the face of a complex economic environment, consumers were adjusting their budgeting behaviours through a dual-track approach of short-term caution with long-term planning to enhance financial resilience. While consumers exhibited a greater appetite for credit during times of uncertainty, perceived access still varied by generation, with Gen Z feeling better served than the older cohorts.

Macroeconomic uncertainties likely hampered confidence in income growth prospects

In Q2 2025, 44% of surveyed consumers in Hong Kong reported an increase in income over the past three months, which is a significant improvement from 29% recorded in the same period last year. This upward trend was observed across all generations (Gen Z, Millennials, Gen X, and Baby Boomers)¹, with Gen Z leading the way as 56% reported an income boost, marking a substantial year-over-year (YoY) increase of eleven percentage points.

However, confidence in future income growth appeared to have been dampened by macroeconomic uncertainties. Fifty-two percent of Hong Kong consumers anticipated that their income would either remain the same or decrease over the next 12 months. When asked about their top financial concerns during the same period, many cited the ongoing global tariff war.

This cautious sentiment was particularly prevalent among Millennials, Gen X, and Baby Boomers. In stark contrast, 60% of Gen Z consumers expected their income to increase in the year ahead, reflecting that financial progress remained evident within certain segments, which are often led by younger earners carving their own paths.

Financial pressures drove strategic budget adjustments among consumers

According to the study, respondents saw inflation of everyday goods (57%), economic slowdown (55%), and job security (54%) as the biggest concerns affecting household finances over the next six months. These concerns reflect the rise in the territory’s inflation rate during the first five months of the year², and the upward trend in unemployment since February 2025³. Against this economic backdrop, nearly a quarter (24%) of consumers anticipated difficulties in paying at least one of their current bills and loans in full, up from 20% a year ago.

Alongside financial uncertainties, a notable shift in household budgeting behaviour was observed. Over the past three months, 39% of consumers reported cutting back on discretionary spending such as dining out and travelling, indicating a short-term solution to immediate potential financial pressures. Meanwhile, 39% reported saving more for emergencies, 25% increased retirement contributions, and 20% accelerated debt repayment, reflecting a focus on long-term financial resilience.

While challenges remain, the local market continues to exhibit some encouraging signs, including heightened activity in the property sector and significant growth in the stock exchange, particularly with a rebound in IPO activities⁴. Additionally, interest rates in Hong Kong are projected to stay low, and further US interest rate cuts⁵ are anticipated in the second half of 2025.

“Despite ongoing economic uncertainties, Hong Kong consumers are demonstrating a pragmatic and resilient mindset, balancing short-term caution with long-term financial planning. It is clear that consumers are adapting to financial uncertainties through prudent strategies such as increased emergency savings and accelerated debt repayment, which are likely to foster greater financial resilience,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion. “These insights underscore the importance of tailored financial solutions that support consumers across generations as they navigate an evolving economic landscape.”

Credit inclusion improved but access and ease still trail behind demand

In addition to cautious financial strategies, consumers increasingly saw access to credit as essential for achieving financial mobility, particularly during times of uncertainty. A strong majority (96%) agreed that credit and lending product access is important for achieving their financial goals. This sentiment was reflected in consumers’ borrowing intentions, with 42% planning to apply for or refinance credit in the coming year, up from 30% in Q2 2024. While demand is expected to grow further as interest rates decline, a notable increase in credit interest was seen among older cohorts, as Gen X (45%) and Baby Boomers (28%) showed increasing intention to seek new credit over the past five quarters.

Despite rising demand, less than half of Gen X and Baby Boomers (48% and 44% respectively, compared to 55% overall) believed that they have sufficient access to credit and lending products, indicating that access barriers remain. Additionally, 42% of consumers ultimately abandoned their credit application or refinancing plans, primarily due to high costs (30%), burdensome processes (30%), and long decision times (28%). These challenges present clear opportunities for lenders to enhance the overall credit journey and better serve unmet demand.

Adding to this, while 63% of consumers believed they would be approved for a credit or lending product when needed, more than one quarter (27%) still did not know their credit score. This gap underscores how limited credit awareness may hinder consumers’ efforts to maintain credit health and potentially lead to misconceptions about their financial readiness.

“The vast majority of consumers view credit as essential to achieving their financial goals and they plan to engage with credit more than ever in the year ahead,” said Sun. “Yet, a noticeable gap remains between demand and perceived access, with older generations reporting greater challenges. To bridge this gap, lenders could streamline processes and design more inclusive solutions that reflect the diverse needs across age groups. At the same time, with over one in four consumers unaware of their credit score, it is clear that improving credit awareness and encouraging proactive credit health management are critical in helping them to unlock more financial opportunities.”

TransUnion’s Q2 2025 Consumer Pulse Study consisted of a survey of 968 adults 18 years of age and older residing in Hong Kong between 5 May and 15 May 2025. This quarterly study examines shifting consumer attitudes and behaviours based on the dynamics of income, debt, and identity theft. For more information, please view the full Consumer Pulse Study Q2 2025 Report.

¹ Generations are defined in this research as follows: Gen Z, 18–26 years old; Millennials, 27–42 years old; Gen X, 43–58 years old; and Baby   Boomers, age 59 and above

² Census and Statistics Department: Consumer Price Indices for May 2025

³ news.gov.hk: Jobless rate rises to 3.5%

⁴ The Hong Kong Monetary Authority: Recent dynamics in the Hong Kong dollar market

⁵ The Hong Kong Monetary Authority: HKMA’s Response to US Fed’s Interest Rate Decision

Soft retail spending in Hong Kong drained growth momentum from the territory’s credit card market, with originations down 4.5% YoY in the last quarter of 2024[1]. The slowed retail spending, in its thirteenth month[2] of negative growth, will likely impact originations activity in the first quarter of 2025. Despite a decline in new card growth, the number of accounts and outstanding balances declined only very slightly in the first quarter of 2025, down 1.1% and 0.1% YoY, respectively. These are some of the insights reflected in TransUnion’s (NYSE: TRU) Hong Kong Industry Insights Report for Q1 2025[3].

Even as the number of credit card accounts in Hong Kong was close to static, the profile of cardholders was evolving, with originations among Gen Z consumers[4]  increasing by 10.2% YoY, boosting their share of total originations to 26.9% and surpassing the originations by Gen X consumers for the first time.

Looking at lender types, consumers increasingly turned towards non-bank lenders for credit card originations. In Q4 2024, 80.4% of credit card originations were from traditional banks, down from 83.2% the previous quarter.

With 93.7% of Hong Kong cardholders in prime[5] and above risk tiers, delinquencies also remained consistent with prior year levels, with balance-level delinquencies in Q1 2025 at 90 days past due (DPD) seeing only a two basis point (bps) YoY uptick to 0.21%.

Personal loan originations surged, but shifted towards smaller value loans

The TransUnion Industry Insights Report also shows that Hong Kong’s personal loan market rebounded in volume during Q4 2024, with originations up 6.6% YoY, although the average opening loan amount for new loans in Q4 2024 was 2.9% less YoY.

The volume growth was more substantial among Gen Z consumers – up by 35.4% YoY, accounting for 15.5% of originations and a share increase of 3.3 percentage points YoY. At the same time, originations to subprime consumers continued to decrease while those to all other risk tiers increased, indicating that lenders increased their focus on less risky consumers.

Consumers continued to shift away from traditional banks for new personal loans: money lenders accounted for 51.7% of originations, with traditional banks providing 40.7% of new personal loans. Although coming off a low base, originations by digital banks more than doubled YoY, with their share of personal loan originations increasing to 7.6%, up from 3.4% over the same period in the previous year.

“Although lenders extended more new personal loans, the size of loans decreased. This indicates that although lenders are willing to meet demand, they are doing so with caution. For lenders, there is opportunity to meet consumer demand with disciplined risk-based pricing and bundling strategies, along with early detection tools to mitigate default risk,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion.

Revolving line demand softened as lenders shifted towards higher-limit, lower-volume strategies

Revolving line originations volumes contracted YoY as performance metrics continued to deteriorate, prompting lenders to re-evaluate their growth strategies in the context of persistent high delinquency levels and charge offs. This was of particular note among digital banks, where there has been a sharp slowdown from double-digit growth in prior quarters.

Origination volumes decreased by 7.9% YoY in Q4 2024, with average limits on new accounts decreasing sharply by 38.4% YoY in the quarter. This drop was primarily due to lower originations from digital banks (down by 29.5% YoY), likely due to deteriorating performance for recent originations, particularly among the near prime consumer risk tier. Delinquency performance across near prime consumers at 30 DPD after six months on book was 2.29% for Q1 2024 originations, 2.98% for Q2 2024 originations, and 3.07% for Q3 2024 originations. The deterioration was sharper among digital bank revolving lines, with performance under the same terms being 2.07% for Q1 2024 originations, 3.32% for Q2 2024 originations, and 3.46% for Q3 2024 originations.

This more cautious lending approach was potentially a reaction to increased delinquencies, up by 15 bps YoY to 0.52% at an account level, while consumer-level delinquencies for the same period were up by 28 bps YoY to 1.06%. These higher delinquencies were likely because revolving lines are lower in consumers’ payment hierarchies, with bigger-ticket or secured loans taking priority.

“Digital banks’ revolving line originations volumes decreased by nearly one third during the latest quarter as these lenders adapted their lending strategies in response to increased delinquencies, prioritising more resilient consumers,” said Sun. “At the same time, traditional banks and money lenders recorded increases in their share of originations as a result, with money lenders leading in volume and share shift as they took up opportunities declined by digital banks. This reflects a deliberate shift towards higher-limit, lower-volume lending to better-risk borrowers in a strategic response to increased defaults for this product.”

Mortgage growth accelerated amid continued property market correction

The Hong Kong Monetary Authority (HKMA) reported that mortgage originations rebounded sharply in Q1 2025[6], This increase was likely due to supportive polices following HKMA’s relaxing of loan-to-value rules, allowing up to 70% loans for most residential properties[7], as well as more buyer-friendly pricing and stable interest rates.

According to the Global Property Guide, Hong Kong’s residential property price index has experienced 13 consecutive quarters of YoY price falls, which when adjusted for inflation, means that property prices in the territory have declined by 9.0% over the same period, and are down nearly 30% from 2021 peaks[8].

In the context of this environment, mortgage origination volumes as published by HKMA increased by 18.7% YoY, and the average value of new mortgages increased by 9.6% YoY in the same quarter, while the number of outstanding accounts increased by 22.4% YoY in the period.

“This resurgence in the Hong Kong property market creates an atmosphere that is particularly favourable for first-time home buyers, for whom affordability has long been a challenge,” said Sun. “As more people buy homes, increased property ownership is likely to drive growth in other credit products, as new homeowners will likely need to expand their credit wallets with personal loans to purchase bigger ticket items such as appliances or larger décor elements, or they may turn to a revolving loan or credit cards to fund renovations. These developments may serve as a catalyst for renewed momentum across the broader credit landscape.”

 
1 Originations and enquiries are viewed one quarter in arrears to account for reporting lag

2 C&SD: Table 620-67001: Total Retail Sales

3 TransUnion's first Industry Insights Report for Hong Kong in 2025 is based on data from the Credit Reference Platform under Credit Data Smart (CDS), following the full migration by the end of November 2024. Future reports will continue to leverage data from this source.

4 Generations are defined as follows: Gen Z, born 1995–2004; Millennials, born 1980–1994; Gen X, born 1965–1979; and Baby Boomers, born 1944–1964 

5 TransUnion CreditVision® risk score: Subprime = JJ to II; Near prime = HH to DD; Prime = CC; Prime plus = BB; Super prime = AA

⁶ According to the Hong Kong Monetary Authority releases on mortgage data from January to March 2025

7 Hong Kong Monetary Authority: Countercyclical Macroprudential Measures for Property Mortgage Loans

8 Finimize: Hong Kong Home Prices Sink Amidst Economic Strain  

While the Hong Kong consumer credit market is often perceived as mature and saturated, a new study by TransUnion (NYSE:TU) has shown that most consumers only hold credit cards as their sole type of consumption credit product, excluding them from the benefits of more purposeful and diverse borrowing in response to differing financial obligations and needs.

Credit cards are well known and valued as a convenient and flexible credit tool for consumers to manage everyday spending and as a short term borrowing mechanism. However, many consumers may not understand or appreciate the various benefits of other credit products for a range of spending and borrowing needs. Consumers who periodically want to make larger purchases, such as travel or holiday spending, may benefit from the flexibility of a revolving line where they can benefit from repayments over a period that they are comfortable with.

As well, personal loans may be more appropriate for larger purchases such as new appliances or even home remodelling in Hong Kong’s increasingly accessible property market. Lenders often offer promotions on new personal loans, meaning that consumers could benefit from an initial three months at a lower interest rate, for example, followed by a fixed and predictable instalment plan.

The study, “Understanding Wallet Mix and Lender Segmentation,”¹ set out to better understand Hong Kong’s distinctive credit wallet profiles and explore different needs and preferences across three segmented consumer credit wallet profiles. Presented at TransUnion’s 2025 Hong Kong Financial Services Summit, the study found that there are three main wallet types among Hong Kong consumers based on their holdings of consumption products, which include credit cards, personal loans and revolving lines:

• Basic spend wallet (83% of consumers) who hold only credit cards
• Flexible funding wallet (11%) who hold at least one credit card and just one personal loan or revolving line
• Extended credit wallet (2%) who hold at least one credit card and more than one personal loan and/or revolving line²

The remaining 4% of credit-active consumers with no credit cards in their wallets were not included in the study.

Amid a growing credit-active population in Hong Kong, the number of consumers across each of these three profiles has increased since November 2018 – the comparison point for the study that drew on November 2024 data. The fastest growth was observed among basic spend consumers, at 8.8%, outpacing flexible funding wallet (5.4%) and extended credit wallet (6.8%) consumers. This shows that new consumers entering the market are most likely to maintain that basic wallet profile, demonstrating consistent preference from consumers for a card-dense wallet rather than a diverse wallet.

Total Number of Consumers by Wallet Type

Source: TransUnion Hong Kong consumer credit database
 

“The study shows that Hong Kong is not nearly as mature a credit market as previously believed, with consumers tending to rely primarily on credit cards instead of adopting a broader range of consumption credit products to meet varied financial needs,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion. “However, a diverse set of credit solutions is available that enables consumers to manage their finances more efficiently – offering purpose-designed options tailored to specific purchases and repayment timeframes, while enhancing flexibility and reducing concentration risk on a single product, thereby strengthening financial resilience against unexpected shocks.”

Understanding flexible funding consumers’ preferences throughout their credit journey

Looking across the consumer credit journey, the study also examined consumers with a more diverse product mix – especially the flexible funding consumers with one type of non-credit card consumption product in wallet – who were most likely to seek additional credit. Based on the percentage of flexible funding consumers opening a new product over a one year period, they were most interested in new personal loans (4.4%), followed by credit cards (2.5%) and revolving lines (2.0%). Consumer preference for lender types for subsequent products also differed across credit products: 84% of flexible funding consumers who opened a subsequent credit card did so with a bank, while 89% of those who opened a personal loan turned to a money lender. For those who opened revolving lines, 55% chose money lenders for new origination, while another 43% turned to digital banks.

TransUnion’s study also found that flexible funding consumers were less loyal to an existing lender when they were originating a new credit card or revolving line – only 11% and 14%, respectively, opened a credit card or revolving line with an existing lender in wallet over the study period. However, their loyalty to lenders was much greater when seeking a personal loan: 58% of those who opened a new personal loan did so with a lender who was already represented in their wallet. Of those, the preferences were split relatively evenly between traditional banks and money lenders, at 54% and 46%, respectively.

In terms of repayment performance on newly opened credit products, near prime flexible funding consumers tended to prioritise repayments for bank-issued products, with the percentage of new accounts delinquent (measured as 30 or more days past due) six months after account opening the lowest for the bank-issued product. Delinquencies for credit cards (0.27%), personal loans (0.20%) and revolving lines (0.60%) issued by banks, were typically lower than those of the same products issued by money lenders, at 0.49%, 0.27% and 1.05%, respectively. Digital banks also experienced higher delinquencies than traditional lenders.

Repayment Performance of Near Prime Flexible Funding Consumers on Newly Opened Credit Products

Source: TransUnion Hong Kong consumer credit database
 

The study also found that, when opening a new credit product, consumers prioritise repayments on the new product and tend to deprioritise payments on existing credit accounts. Among flexible funding consumers, the 30+ days delinquency rate for a new origination was 0.5% lower than for an existing account. This was true across all three wallet types, and remained consistent across lender segments too.

Wallet diversity unlocks growth for lenders while empowering consumers with broader credit choices

While Hong Kong’s credit market remains dominated by basic spend consumers, flexible funding consumers present a significant growth opportunity for lenders, as they are the most likely to originate new products. However, low lender loyalty and higher delinquencies among consumers with diverse wallet profiles highlight the need for targeted strategies. Lenders seeking to capture value in this credit environment should focus on strengthening customer retention and leveraging cross-selling campaigns. Implementing early default detection and monitoring tools into underwriting processes can also proactively address the higher risks across more diverse wallets.

Another key opportunity for lenders lies in promoting greater wallet diversity, which provides consumers with increased flexibility and choice to meet their unique financial needs, while unlocking untapped market potential.

“To unlock the full potential of Hong Kong’s credit market, lenders should focus on delivering personalised, purpose-driven credit solutions that not only address the current needs of consumers across the three credit wallet profiles, but also encourage the adoption of a broader range of credit products,” said Sun. “In turn, consumers can benefit from exploring a more diverse mix of credit options tailored to specific financial goals — moving beyond reliance on a single product to more targeted solutions that offer greater flexibility, different repayment options and improved risk management. Promoting wallet diversity is a win-win: it drives responsible growth for lenders while empowering consumers to take greater control of their financial wellbeing.”

¹ About the study: the three identified wallet profiles were evaluated in November 2024 and compared to a pre-pandemic cohort from November 2018 to reveal wallet migration trends. To explore credit needs and preferences among the identified wallet profiles, the study observed origination activity over 12 months between Q2 2023 and Q2 2024, including analysing product type, risk tier and lender type. Credit performance was evaluated by monitoring newly originated products for six months post origination to identify trends affecting credit health. The study also compared the performance of newly acquired and existing products to determine any shifts in payment hierarchy.

² Consumers in all wallet profiles can additionally have auto, mortgage or loan on card products.

• Hong Kong’s suspected digital fraud rate exceeded the global level for the fifth consecutive year, reaching 6.2% in 2024
• Retail exhibited the highest rate of suspected digital fraud in Hong Kong last year, followed by communities and financial services
• Majority (95%) of Hong Kong respondents expressed concern about falling victim to fraud amid rising online transactions

Insights from the newly released TransUnion (NYSE: TRU) H1 2025 Update to the State of Omnichannel Fraud Report revealed that 6.2% of all attempted digital transactions where the consumer was in Hong Kong were suspected to be digital fraud¹ in 2024, 15% higher than the global rate of 5.4%. This marks the fifth consecutive year that Hong Kong’s suspected digital fraud rate has exceeded the global level since 2020 when TransUnion began research on this metric. The trend highlights vulnerabilities exacerbated by the city's rapid digital adoption and increasingly sophisticated cybercriminal tactics.

More notably, among consumers TransUnion surveyed in 18 countries and regions for the report between November and December 2024, almost one in three (29%) said they lost money due to online, email, phone call or text messaging fraud in the last year. In Hong Kong, 29% also said they lost money due to fraud at an average cost of US$4,332 per person, which was over HK$33,500² in local currency. This figure significantly surpassed the global average of US$1,747 (over HK$13,600²), positioning Hong Kong with the third highest average amount of reported fraud loss across surveyed international markets.

Retail, communities and financial services ranked as the top three industries targeted by suspected digital fraud in Hong Kong

In 2024, the retail industry recorded the highest suspected digital fraud rate at 17.8% for transactions where the consumer was in Hong Kong. It represented a staggering 113% year-on-year (YoY) increase, the largest increase in the suspected digital fraud rate from 2023 to 2024 for retail among all countries and regions analysed. This rapid increase also far surpassed the YoY digital transaction growth of 15% within the sector, suggesting a heightened likelihood of fraudulent activities outpacing overall industry growth.

This trend echoed with local data from the Hong Kong Police Force, which recorded almost 12,800 online shopping fraud cases in 2024, resulting in losses of over HK$356 million, an increase of 43% in cases and 87% in financial losses compared to 2023³, underscoring the pressing need for enhanced safeguards in the retail ecosystem.

The communities industry, which includes venues such as online dating and forums, came close behind with the second highest suspected digital fraud rate in Hong Kong at 17.0%, followed by financial services at 5.4% in 2024.

Although financial services remained among the top three industries most targeted by suspected digital fraud in Hong Kong, this rate has significantly decreased by 18% YoY (down from 6.6% in 2023), even as the number of digital transactions in financial services in Hong Kong increased by almost one fourth (23%). This digital fraud rate decrease may be attributed to various measures implemented by the Hong Kong government, such as the expansion of Suspicious Account Alert for internet banking and physical branch transactions⁴, which has bolstered customer protection against rising fraud risks.

Despite these findings, fraudsters are highly adaptable, constantly evolving their tactics to target unprepared victims. Businesses and consumers must stay vigilant and informed about the latest fraud trends to avoid being deceived. According to the Hong Kong Monetary Authority (HKMA), since local banks implemented measures to combat malware in February 2024⁵, fraudsters swiftly shifted to schemes that trick victims into revealing SMS one-time passwords (SMS OTPs) for ongoing fraudulent activities.

“With the average reported fraud loss in Hong Kong exceeding HK$33,500 — far surpassing the latest median monthly local income of HK$22,000⁶ — the situation certainly needs greater public attention. While combating fraud remains the city’s primary goal, stronger collaboration among regulators, businesses and consumers is essential for effectively mitigate risks. We look forward to seeing more partnerships across various sectors to further enhance our defenses collectively,” said Eric Cheung, head of solution consulting at TransUnion Asia Pacific.

Retail had the highest rate of suspected digital fraud in Hong Kong in 2024, outpacing overall digital transactions growth in the industry

 Source: TransUnion TruValidate™

Hong Kong respondents remained concerned about falling victim to fraud amid increasing online transactions

The TransUnion-commissioned survey also revealed a growing reliance on online transactions among Hong Kong consumers. Close to one in three (32%) respondents reported conducting more than half of their finance, retail and business transactions online, an increase from 27% in 2023. Among generations surveyed (Gen Z, Millennials, Gen X and Baby Boomers) ⁷, Gen Z respondents demonstrated the most significant shift, with almost one in two (44%) conducting more than 50% of their transactions online, a rise from 30% in the previous year.

With rising online transactions, 95% of Hong Kong respondents expressed concern about falling victim to fraud, highlighting the widespread apprehension and the necessity for businesses to enhance protective measures against online deception throughout the digital journey.

Among those who indicated they were targeted by email, online, phone call or text messaging fraud within the last three months (51%), phishing (the use of fraudulent emails, websites, social posts, QR codes, etc. meant to steal data) was the leading type of fraud experienced by respondents in Hong Kong since TransUnion began conducting this survey in 2022, suggesting a persistent trend.

"While the city’s rapid digital adoption has unlocked immense economic opportunities and consumer convenience, it has also exposed vulnerabilities that sophisticated cybercriminals are actively exploiting," added Cheung. "Although consumers are increasingly aware of potential digital fraud in conducting transactions online according to our report findings, some still unfortunately became victims. To sustain business growth by effectively addressing consumers’ rising digital needs, it is crucial for businesses across all industries to leverage broader data and analytics, actively safeguarding themselves and their consumers by adopting friction-right fraud prevention solutions."

TransUnion came to its conclusions about digital fraud based on intelligence from TransUnion TruValidate. Specific country and regional data in the report includes Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Guatemala, Hong Kong, India, Kenya, Mexico, Namibia, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom, the United States and Zambia. Download the TransUnion H1 2025 Update to the State of Omnichannel Fraud Report for more information and insights about the global fraud trends.

1 The rate or percentage of suspected digital fraud attempts reflects those which TransUnion customers determined to meet one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represent every country worldwide and not just the select countries and regions.

2 Based on the exchange rate on Jan. 6, 2025 when calculated for the report.

3 Cyber Defender: Technology Crime Figures 

4 HKMA: Expansion of Suspicious Account Alert for internet banking and physical branches transaction

5 The Hong Kong Association of Banks: Enhancement on security measures to safeguard customers against malware scams

6 Census and Statistic Department: Median monthly employment earnings of employed persons by age and sex (excluding foreign domestic helpers) (November 2024 – January 2025)

7 Generations were defined as follows when the survey was conducted Nov. 21 to Dec. 10, 2024: Gen Z, 18–26 years old; Millennials, 27–42 years old; Gen X, 43–58 years old; and Baby Boomers, age 59 and above

Access to credit serves as a fundamental catalyst and pivotal tool for financial empowerment among Hong Kong’s younger consumers, facilitating everyday purchasing convenience and enabling significant life milestones such as home ownership. Despite this important role, persistent misconceptions regarding the credit behaviour of this younger demographic (aged 21-30) continue to create barriers to broader financial inclusion and choice.

TransUnion’s (NYSE:TU) new study, presented at its annual 2025 Hong Kong Financial Services Summit, set out to examine and address the common perceptions about young consumers, often negative, that persist in market. It showed that younger, credit eligible consumers offer significant opportunities for lenders, and that understanding the credit behaviours and preferences of these emerging consumers and empowering them with adequate access to credit can help lenders better service the needs of this increasingly credit-active generation.

The study, “Empowering Young Consumers’ Credit Lifecycle”, set out to understand the credit behaviours of consumers aged 21 to 30 years (young adults) and to provide clear, evidence-based insights for lenders, while empowering these consumers with more credit opportunities. The study assessed credit participation and engagement patterns against industry benchmarks of consumers across all ages. This research drew on TransUnion Hong Kong’s Consumer Credit Database to examine borrowers across three cohorts (starting June 2022, 2023 and 2024), with supplementary context from its Consumer Pulse Study for Q4 2024.

“Enabling younger consumers with adequate credit access empowers them financially, allowing better management of everyday expenses and unforeseen financial obligations,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion. “This empowerment is critical for promoting financial inclusivity and aiding these individuals in achieving important life milestones such as home ownership, studying abroad, or entrepreneurship.”

Perception: Younger consumers don’t value credit and are disengaged from the traditional credit market

Study findings: 84% of young adult consumers in Hong Kong agreed that credit access is important for achieving their financial goals, while 60% agreed that credit would give them access to new opportunities that could lead to a better quality of life, which is a strong indication that younger borrowers understand the importance and relevance of credit access.

Credit Product Penetration Rate by Age Group

The table above shows that younger consumers actively participated in the credit market over the study period, with the percentage of younger consumers holding unsecured products (credit cards, personal loans and revolving lines), exceeding overall industry averages in all products except personal loans for the 21-25 age tier. However, the fact that 10% or less of younger consumers held a credit product other than a credit card indicated opportunities for lenders to grow their portfolios by introducing other credit products to these consumers. As well, the lower participation among younger consumers for mortgages, while not surprising given affordability challenges, indicates further opportunities to expand access to home ownership.

Perception: Younger consumers generally don’t leverage credit responsibly

Study findings: Looking at credit card, which is the most popular credit product among the young adult consumers in Hong Kong, the data showed that while credit lines increased with age across all risk tiers, utilisation rates remained steady as consumers aged. With higher line access, average balances increased with age, indicating that growing consumption needs and greater credit access were met with responsible borrowing.

“Credit utilisation and average balances were well aligned with risk-based access to credit, which grew with age as risk profiles as well as likely income levels improved,” said Sun. “This highlights responsible credit use and refutes the perception that younger consumers are less likely to handle credit responsibly.”

Perception: Younger consumers have low appetite for new credit, with a lack of lender loyalty.

Study findings: Only one in three young adult consumers made any new credit enquiries in a six-month period over 2022 and 2023, with only one in four originating a new credit product over that time, showing that these consumers had a low level of interest in applying for new credit.

Credit cards were the most popular new product among young adults during the study period, with 20% of 21-year olds originating a new credit card over this period, up to 23% of 25-year olds opening a card and the same for 30-year olds. In contrast, fewer than 5% of younger consumers opened a new personal loan, mortgage or revolving line in the period under study.

However, when the time came to apply for an additional credit product, just 3% of young adult borrowers returned to their first lender for a new credit product. This highlights an opportunity for lenders to bolster their approaches to building customer loyalty, and also suggests that cross-selling strategies may support wallet expansion, especially as consumers’ needs shift with age.

Perception: Younger consumers find it difficult to keep up with their credit obligations

Study findings: Higher delinquency rates among young adults indicated underperformance compared to consumers in other age groups, although Hong Kong delinquency rates, even for younger consumers, remain low in comparison with other global markets. Among 21-year old prime[1] credit card holders, 1.5% of new accounts opened were at 30 days or more past due after 12 months on book. Defaults were lower for slightly older age cohorts, with delinquencies for new accounts after 12 months among 25- and 26-year old prime consumers at 1%, on par with industry vintages for the prime segment.

These delinquency rates highlight the importance of financial education, targeted risk mitigation tools, and custom credit management strategies to these consumers who are relatively new in their credit journey.

“Our research clearly demonstrated that younger consumers in Hong Kong are a valuable and increasingly active segment within the Hong Kong credit market,” said Sun. “Contrary to perceptions, these consumers deeply value credit and actively engage with traditional credit products. They manage their financial commitments responsibly, and their credit behaviors generally align with lenders' risk-based expectations.

“By adopting targeted approaches in credit education, wallet diversification, loyalty enhancement, risk optimisation, and proactive delinquency management, lenders can effectively engage younger consumers, supporting them through their financial journeys and securing long-term sustainable growth,” Sun said.

[1] TransUnion CreditVision® risk score: super prime = AA; prime plus = BB; prime = CC; near prime = DD to HH; subprime = II to JJ 

Consumers in Hong Kong are increasingly choosing the value and convenience of revolving lines, mostly offered by digital banks responding to consumers’ needs, with demand throughout the year in 2024 trending well above the prior year levels. Enquiries for this product increased by 25.2% year-over-year (YoY) between September and November 2024, and revolving line origination volumes, a measure of new accounts opened, were up 76.4% YoY in the June to August 2024 quarter[1] (the most recent available data due to reporting lag). These market shifts and trends are reflected in TransUnion’s (NYSE: TRU) Hong Kong Industry Insights Report ending November 2024.

Despite the significant increases in originations, the average new account credit line amount decreased by almost a third (32.8%), with two thirds (66%) of originations coming from digital banks who are growing their customer base via this product with faster approvals being a value to consumers. Lower credit limits on revolving lines are due to the observed shift in share to these digital banks, who have a lower risk appetite compared to traditional banks that offer much larger revolving line limits.

Given the shift towards lower new credit line assignments, outstanding balances decreased by 5.1% and average balances per account decreased by 14.8% YoY in the three months ending November 2024. Despite the recent balance decreases, the revolving line market remains strong and holds significant potential for growth, as the number of revolving line accounts increased by 6.2% YoY, and the number of consumers carrying an active revolving line balance increased by 11.5% YoY.

The increase in revolving line account activity was primarily driven by younger consumers, and those seeking digital wallet integration for online shopping and cross-border spending. Millennials[2] accounted for 40% of recent revolving line originations, and Gen Z represented more than 30%. The number of new accounts granted to Gen Z consumers more than doubled (increased by 127.8%) YoY in the three months ending November 2024.

“An increasing number of consumers in Hong Kong are using revolving lines from digital banks, reflecting greater product diversity in borrowers’ wallets,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion. “This product makes it easy to transact, and while we are seeing more consumers carry balances, those who revolve their balances may be doing so to take advantage of the lower interest costs on these facilities, compared to those on more traditional products like credit cards.”

Alongside this rapid growth has been a rise in delinquencies. The percentage of accounts 60 or more days past due (DPD) was up 8 basis points (bps) YoY to 0.7% at the end of November 2024.

“While an increase in delinquencies may be of concern, it is in the context of remarkable growth in the adoption of a product that is disrupting the credit behaviours of multiple segments of consumers, particularly Millennials and Gen Z who prefer the speed and convenience of revolving lines,” Sun added. “Lenders who employ smart monitoring solutions to keep track of performance will be better positioned to limit further risk of increasing delinquency rates.”

Redefined risk strategies position personal loans for confident growth

Enquiries for personal loans continued to increase YoY, by 1.2%, but origination volumes declined by 4.6% YoY in the period from June to August 2024. Despite this decrease, originations among Gen Z consumers increased by 10.3% over the same period.

Personal loans also saw YoY declines in the overall account numbers (-1.2%), outstanding balances (-1.3%) and average balances (-0.7%) in the three months ending November 2024, reflecting lenders’ cautious appetite for extending these loans, particularly to borrowers in the below prime risk tiers[3].

Given that personal loans market activity has slowed, and total asset growth has decreased, lenders’ restrained approach in managing risk carefully has resulted in delinquencies improving over the previous two quarters and stabilising under the 1% threshold across primary delinquency measures.

“Lenders need to adopt advanced trended data and proactive identification of early risk signals to better manage their personal loans portfolio risk. Opportunities for prudent growth still exist and can be found by taking a more comprehensive trended view of consumer performance across all products in wallet,” said Sun.

Opportunity for credit card portfolio growth lies among younger consumers, and those new to Hong Kong

The Hong Kong credit card market saw higher spending from existing cardholders, influenced by macroeconomic factors such as moderate economic growth of 2.5% in 2024[4] and increase in travel related spend. This was reflected in the 1.4% increase in outstanding balances YoY in the three months ending November 2024, a 2.1% increase in the number of consumers with an active card account, and the 1.2% increase in the number of consumers carrying a balance over the same period. This occurred despite declines in local retail sales between June and August of between 10 and 12%[5].

Credit card origination volumes declined by 9.1% YoY between June and August 2024, with the average credit limit offered on new cards down 6.6% YoY. Demand remained soft over the September to November period, when enquiries for credit cards declined by 7.0%, which likely affected originations for the three months ending November 2024. However, there is still opportunity for lenders to grow their portfolios as younger consumers and new to region consumers enter the credit market.

The share of new credit cards originated by Gen Z consumers increased from 17.4% to 21.4% YoY in the three months ending November 2024, accounting for more than one in five new cards issued. With Hong Kong’s young consumers entering a stable job market, many into relatively well-paying roles in finance or technology, they often start their credit journey at prime or prime plus credit tiers. Their lower risk credit profiles make them attractive prospects for lenders, who also recognise the future lifetime value of these younger borrowers.

“Lenders seeking growth in the credit card portfolios can draw on trended risk data to identify lower-risk, younger consumers who are building their credit wallets to meet their lifestyle and travel ambitions. Further opportunities for growth lie among new talents arriving in Hong Kong, with around 180,000 people having moved to the city through various talent admission schemes as of the end of 2024⁴,” Sun said. “Adapting strategies and products to appeal to this market, who are also rapid adopters of revolving lines, will be key to building card portfolios in the future.”

¹ TransUnion's last Industry Insights Report for Hong Kong in 2024 is based on the final sets of credit data until end of November before the full migration to Credit Data Smart (CDS). Future reports will be based on data from the Credit Reference Platform under CDS.

² Generations are defined as follows: Gen Z, born 1995–2004; Millennials, born 1980–1994; Gen X, born 1965–1979; and Baby Boomers, born 1944–1964 

³ TransUnion CreditVision® risk score: super prime = AA; prime plus = BB; prime = CC; near prime = DD to HH; subprime = II to JJ

⁴ HKSAR Government: The 2025-26 Budget

⁵ C&SD: Provisional statistics of retail sales for December 2024 and whole year of 2024 

Research launched in December 2024 by TransUnion reveals that nearly half (44%) of the surveyed consumers in Hong Kong were targeted by fraud through online, email, phone call or text message channels in the last three months². In response, ZA Bank is making the Credit Alert Service accessible to all its users, enhancing value and empowering them to protect themselves from rising fraud risks. 

Through this service, users will receive instant alerts via the ZA Bank App that notify them of critical changes to their credit report, including: 

• New credit report enquiries³ 
• New credit accounts opened under their name 
• Changes to addresses or phone numbers 

Devon Sin, Alternate Chief Executive of ZA Bank, said: “ZA Bank is proud to be the first bank in Hong Kong to offer the comprehensive TransUnion Credit Alert Service for free, removing the cost barrier for a vital fraud protection tool. This partnership with TransUnion reflects our commitment to leveraging innovation to protect our users’ financial well-being, especially as digital fraud continues to rise in Hong Kong. By integrating this feature into our app, we are not only enhancing security but also promoting financial inclusion to ensure more people have access to tools that safeguard their finances.” 

Wingo Wong, Managing Director of TransUnion Credit Information Services Limited in Hong Kong, said: “For years, TransUnion has been at the forefront of fraud protection, pioneering efforts to enable individuals to identify risks earlier and minimise potential losses. As digital fraud continues to rise in Hong Kong, we are delighted to partner with ZA Bank to expand our Credit Alert Service to its users. This partnership underscores the importance of collaboration between businesses and consumers in combating this escalating threat. Together, we are committed to empowering Hong Kong consumers in the fight against fraud in an increasingly digital world.” 

1 As the first digital bank to launch in Hong Kong (previously named “virtual bank”), ZA Bank had the highest number of users and customer deposits among the city’s eight digital banks as of 30 June 2024. Source: Interim reports of 8 digital banks 

2 TransUnion: Consumer Pulse Q4 2024, Dec 2024 

3 Currently only new enquiries raised through TransUnion Credit Information Services Limited by banks or financial institutions are included, and new enquiries raised through other credit reference agencies will be available gradually

TransUnion (NYSE: TRU) today unveiled new insights into e-commerce fraud trends observed during the start of the 2024 yearend holiday shopping season in Hong Kong. The analysis indicated that 17.4% of attempted e-commerce transactions where the consumer was in Hong Kong were suspected of Digital Fraud during “11/11” (Singles’ Day)1 and the Black Friday period from 28 November (the Thursday before Black Friday) to 2 December (Cyber Monday) 2024. This placed Hong Kong as the second highest among the analysed countries and regions. In stark contrast, 4.6% of attempted e-commerce transactions globally during this holiday period were suspected of Digital Fraud.

Based on proprietary insights from TransUnion’s global intelligence network, this percentage of suspected e-commerce Digital Fraud attempts originating in Hong Kong during the holiday shopping period (17.4%) was also 4.2% higher than the rate in the rest of 2024² (16.7%), underscoring the need for heightened vigilance and enhanced security measures among consumers and businesses alike during holiday seasons in the city.

Black Friday recorded the highest single day of suspected Digital Fraud in Hong Kong

The study revealed the suspected e-commerce Digital Fraud rate for each day in the holiday shopping period when the consumer was in Hong Kong during the transaction. The suspected Digital Fraud rate in Hong Kong remained higher than the global level throughout the whole period, peaking on Black Friday at 23.4%.

“With consumers increasingly shopping online amid enticing promotions during these festive periods, the surge in online activity has created additional opportunities for fraudsters to exploit unprepared consumers,” said Jerry Ying, chief product officer at TransUnion Asia Pacific. “The significantly higher rate of suspected Digital Fraud in Hong Kong during the holiday shopping period compared to other global markets is a wake-up call for both consumers and online retailers to remain vigilant. Safeguarding against fraud is a shared responsibility, requiring collective efforts from all parties to ensure a safe e-commerce experience.”

Suspected Digital Fraud Rate in Hong Kong Continues to Exceed Global Level Significantly Throughout the 2024 Holiday Shopping Period

Source: TransUnion TruValidate™ (*For Hong Kong only)
 

Hong Kong holiday shoppers remain wary of Digital Fraud despite eagerness to shop online

The increase in suspected Digital Fraud came as almost two-thirds (65%) of Hong Kong consumers reported that half or more of their holiday shopping will be conducted online, according to TransUnion’s latest Q4 2024 Consumer Pulse Study. This trend was even more pronounced among younger generations, with 80% of Gen Z and 76% of Millennials stating that they’ll shop online for more than half of their holiday purchases.

Despite the strong appetite for online shopping during the holiday season, 67% of Hong Kong consumers still expressed being extremely, very or moderately concerned about falling victim to digital fraud this year. In light of this, businesses should assume responsibility for implementing proactive measures to mitigate risks in an increasingly digital landscape to ensure the data security of their customers.

“With nearly seven in every 10 consumers saying that they are concerned about falling victim to digital fraud during this holiday season, it is as important as ever for retailers to equip themselves with the necessary tools to detect fraud early, helping minimise fraudulent transactions while protecting the legitimate ones. Retailers should prioritise implementing holistic fraud solutions that can verify customer identity and authenticity as early as possible during a transaction, ensuring an enjoyable and worry-free online shopping experience,” said Ying.   

TransUnion came to its conclusions about Digital Fraud based on intelligence from its identity and fraud product suite that helps secure trust across channels and delivers efficient consumer experiences – TransUnion TruValidate^TM. The rate or percentage of suspected Digital Fraud attempts reflects those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represent every country worldwide.

To find out how this data varies by select regions and more, TransUnion’s holiday fraud trends can be found here.

1. Nov.11 is not considered in the context of all surveyed countries and regions except for Hong Kong
2. The rest of 2024 refers to Jan. 1 to Nov. 27, 2024 excluding Nov. 11, 2024