At the end of the third quarter, the Credit Industry Indicator (IIC) of TransUnion Colombia increased seven points, reaching the level of 100, which despite the recovery, is below the levels prior to the pandemic.
The IIC was launched in August 2021 and is a measure of consumer credit health trends in four categories: demand, supply, consumer behavior and performance.
(See: What are the financial products that are used the most in Colombia?).
According to TransUnion, a lower number of IICs compared to the previous period represents a drop in credit health and a higher number reflects improvement. In September the IIC of 100 represented an improvement in credit health compared to the same month of 2020 and compared to the previous month (August 2021).
The growth of the IIC in September was mainly due to an increase in the supply of credit. Originations – a measure of new accounts opened and which are a function of supply and demand – rose 75% year-over-year last July (the latest origination data available), but remained 15% below pre-pandemic levels. July 2019. July 2021 new home, vehicle and free investment loans were above or close to the prepandemic origination levels of July 2019.
(See: Libran credits are gaining momentum again: what they’re being used for).
Although consumer access to credit recovered, entities remained conservative with the new credit card lines, which fell 21% year-on-year in July 2021. Of the 8.1 million consumers who had a credit card in the third quarter of 2021, 76% had a balance, compared to 78% in the third quarter of 2020.
Delinquencies of 60 days or more increased to 5.1% in the third quarter of 2021, compared to 3.5% in the third quarter of 2020 (160 basis points increase). The increase in non-performing loans was seen in all loans except for payroll.
(See: Learn to apply for a loan and not fail in the attempt).
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