Bankcard Originations Rise, Growing Demand Signals Economic Confidence
BANKCARD PORTFOLIOS OFFER A GLIMPSE INTO THE EVER-EVOLVING REALM OF CONSUMER CREDIT, and in our journey through a dynamic economic environment, it is imperative to remain updated on the evolving patterns of consumer credit behavior. Consumer credit behavior can help provide insight into trends in spending habits, consumer financial responsibility, and can be one of many indicators of economic stability.
Despite fluctuations in the financial landscape, one particular trend to note is new bankcard originations are showing sustained growth, with demand remaining steady, underscoring the resilience of the banking and financial sector in adapting to changing consumer needs and economic conditions.
The latest Equifax Consumer Credit Trends report from August 2023 shows 39.5 million bankcards originated year-to-date, collectively carrying a total credit limit of $218.8 billion, an 11.1% increase from the previous year. Also, a noteworthy surge is observed in credit limits. For example, the data shows a 12.5% bump in total credit limit for all bank cards issued in June 2023. These figures emphasize the continuing growth and robustness of the credit card industry, potentially reflecting evolving consumer preferences and financial trends.
“Rising bankcard originations are not just a numerical growth; they signify the expanding horizons of financial possibilities for consumers. The statistics shown in our August 2023 U.S. National Consumer Credit Trends report are a testament to the resilience and adaptability of the credit card industry, shaping the future of consumer finance,” said Maria Urtubey, Equifax Risk Advisor.
As consumers seek financial flexibility and adapt to evolving economic circumstances, this upward trend is likely to persist, continuing to shape the future of consumer finance. As of August, the average bankcard utilization stood at 21.3%, compared to 19.81% a year ago.
For more on bankcard originations, watch the latest here or download the consumer credit trends report here.