The year 2020 in consumer lending is characterized by the use of digital channels and the decrease in the demand for consumer loans in general, especially for daily spending or the credit limit, according to the data of the bank Ciadele.
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With low spending declining, customers began to make larger purchases and improve their homes – 27% of all consumer loans were taken with the aim of buying a car, which is 4% more than in 2019, and 5.6% – for home improvement.
Last year, the demand for financing without a defined goal decreased. The number of customers who are interested in their borrowing opportunities when finding out their credit rating has decreased – it has decreased by 5% compared to 2019. Also, customers are less satisfied with the credit limit (reduction by 4%). In turn, in December, it was observed that at the very end of the year, customers actively paid overdue credit card payments and consumer credit balances.
“As daily expenses decrease, the possibility to cover existing liabilities and assess the purpose for which to take on future credit liabilities will naturally increase. However, as the flow of people in shops and catering establishments resumes, we can also expect a greater need to use the credit limit of credit cards, ”explains Vladislav Mironov, a member of the Board of Citadele Bank.
The year 2020 also marked a more active use of digital channels. Seven out of ten loan applications were received remotely – on a website or in a mobile app, which is 10% more than in 2019. 70% of all loan agreements are concluded remotely, increasing by 13% per year.
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