FICO UK Credit Card Market Report: November 2023
2024年1月29日 - 6:05PM
ビジネスワイヤ(英語)
Financial squeeze on households illustrated by
fall in payments to balance while spending followed usual
pre-Christmas upward trend
The FICO UK Credit Card Market Report for November 2023 reflects
many of the usual trends in the run-up to Christmas, with increased
spending and a reduction in payments made to balance. However,
probably as a result of the continued higher prices and rising
interest rates, overall card balances reached the highest level
since FICO records began.
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Average UK credit card spend began to
increase again, after reducing in September and October; up 2.3%
month-on-month to £800 (Graphic: FICO)
Highlights
- Average spend began to increase again, after reducing in
September and October; up 2.3% month-on-month to £800
- 36.7% of balances were paid, down 2.8% month-on-month,
continuing the downward trend seen since July 2023
- The average balance increased by 1% month-on-month to reach the
highest level since FICO records began — an average of £1,740
- The number of customers missing one or two payments showed a
monthly fall of 7.1% and 4.2%, to 1.5% and 0.3%, respectively –
however, they remain 3.9% and 7.2% higher year on year
- Cash spend decreased for the second month in a row, dropping by
2.8% to 3.6% of total spend
- The average credit card overlimit amount has remained stable at
£90
FICO Comment
Following the usual Autumn dip, November brought higher spending
as households prepared for the festive season. Higher prices also
probably contributed to a 2.3% month-on-month increase — 6.4%
year-on-year — to reach an average of £800 for November. However,
with the percentage of balances paid falling by 2.8% from October
to November, and 6.7% lower than the same period in 2022, average
card balances increased by 1% on the month and 9.9%
year-on-year.
The average card balance in November stood at £1,740, following
a general pattern of increases throughout 2023. This is the highest
level since FICO records began in 2006 and is expected to increase
further in December as continued high prices and the associated
pressure on households, cause a drop in the percentage of balance
being paid.
The percentage of customers spending over their credit card
limit has also been trending up over the last two years; currently
standing at 1.24%; a 5.3% increase month on month and 26.7%
increase year on year. However, the average overlimit amount has
remained stable at £90.
While the number of overlimit customers has increased, those
missing payments remains erratic, albeit probably following the
typical trend for managing payments in order to keep credit lines
open during the festive season. Fewer customers missed one or two
payments in November compared to October. The number of people
missing one payment fell 7.1% month-on-month, while the number
missing two consecutive payments fell by 4.2%.
The average balance of customers missing one payment increased
for the second month in a row: a 0.9% increase month-on-month and
7.8% increase year-on-year to £2,200. There was also a 2% increase
month-on-month and 4.5% year-on-year to an average of £2,640 for
those customers missing two consecutive payments.
With spending set to increase further in December, and fewer
payments to balance likely to be made, risk teams should monitor
customer accounts closely. January usually brings a post-Christmas
reduction in average balances as customers focus on making
payments, but increased prices may mean balances don’t fall as much
as usually expected in the New Year.
Key Trend Indicators – UK Cards November 2023
Metric
Amount
Month-on-Month Change
Year-on-Year Change
Average UK Credit Card Spend
£800
+2.3%
+6.4%
Average Card Balance
£1,740
+1%
+9.9%
Percentage of Payments to Balance
36.7%
-2.8%
-6.7%
Accounts with One Missed Payment
1.5%
-7.1%
+3.9%
Accounts with Two Missed Payments
0.3%
-4.2%
+7.2%
Accounts with Three Missed Payments
0.2%
+4.2%
+14.7%
Average Credit Limit
£5,610
+0.1%
+1.2%
Average Overlimit Spend
£90
-3.3%
-4.4%
Cash Sales / Total Sales
0.9%
-8.2%
-2.2%
Source: FICO
These card performance figures are part of the data shared with
subscribers of the FICO® Benchmark Reporting Service. The data
sample comes from client reports generated by the FICO® TRIAD®
Customer Manager solution in use by some 80% of UK card
issuers. For more information on these trends, contact FICO.
About FICO
FICO (NYSE: FICO) powers decisions that help people and
businesses around the world prosper. Founded in 1956, the company
is a pioneer in the use of predictive analytics and data science to
improve operational decisions. FICO holds more than 220 US and
foreign patents on technologies that increase profitability,
customer satisfaction and growth for businesses in financial
services, insurance, telecommunications, health care, retail and
many other industries. Using FICO solutions, businesses in more
than 100 countries do everything from protecting 2.6 billion
payment cards from fraud, to improving financial inclusion, to
increasing supply chain resiliency. The FICO® Score, used by 90% of
top US lenders, is the standard measure of consumer credit risk in
the US and other countries, improving risk management, credit
access and transparency. Learn more at www.fico.com.
FICO and TRIAD are registered trademarks of Fair Isaac
Corporation in the U.S. and other countries.
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For further comment on the FICO UK Credit Card activity
contact: FICO UK PR Team Wendy Harrison/Parm Heer
ficoteam@harrisonsadler.com 0208 977 9132
Fair Isaac (NYSE:FICO)
過去 株価チャート
から 5 2024 まで 6 2024
Fair Isaac (NYSE:FICO)
過去 株価チャート
から 6 2023 まで 6 2024