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Credit card debt in the US totaled $1.12 trillion in Q1 2024, up 13.1% YoY, per the Federal Reserve Bank of New York. Use this chart:. Adjust credit card marketing strategies to boost new credit card openings. Illustrate growth potential for BNPL services. Highlight the untapped potential of consumers who don鈥檛 use any credit products. More like this:.

The 30-year fixed rate increased to 6.71% last week, the highest rate since November, per the Mortgage Bankers Association. That鈥檚 driven demand for mortgages down to its lowest point in 28 years. Home values are down. The total value of US homes at the end of 2022 was down 4.9% from June, according to Redfin.

For example, analyze whether those who complete an online course on budgeting have fewer overdrafts, an increase in emergency savings, or a decrease in overall debt load. Look into whether consumers who watched a video series show different behaviors from those who completed a written course.

What this means: Credit card balances and delinquencies typically fall in Q1 as spending winds down after the holidays. Delinquency growth is slowing鈥擩PMorgan and Wells Fargo鈥檚 rates rose the least in nearly a year. This piecemeal progress suggests that the credit card recovery is going to take a long longer than we previously expected.

础辫辫濒别鈥檚 loan reporting strategy pushes financial wellness. Apple plans to report loans to US credit bureaus starting in the fall. This ensures the loans are reflected in the consumer's overall financial profiles and promotes responsible lending. Which BNPL users will be most valuable for Apple?

FIs should target millennials with mortgage products and advice on how to reach their homeownership goals鈥攂ut they should be careful to remain compliant with regulations if they offer mortgage discounts for special groups like first-time homebuyers.

In product-based banking, the consumer must seek out a mortgage, home insurance, and home improvement loans separately (and sometimes from different providers when the need arises). For nonfinancial services that support homeownership, they must seek out another set of providers outside of financial services. The customer journey is disjointed and siloed.

How we got here: These young adults have become a relatively fiscally conservative generation that鈥檚 focused on reducing their spending due to inflation, diminished savings, and rising debt. Expensive cities like San Francisco and New York were at the bottom of the list for metropolitan areas in which Gen Z sought mortgages in 2022.

Apple Pay Later will not accept credit cards to help prevent users from taking on more debt to pay back their loans. Why this is a big deal: The long-anticipated Apple Pay Later has strong growth potential. Apple Pay is already accepted at more than 1 million retail stores across the US, setting the stage for rapid and widespread uptake upon launch.

Instead of issuing new debt, Splitit taps consumers鈥� credit card lines and restructures this into BNPL loans with 0% interest installments. What problem is it solving? Because in-store BNPL can be time-consuming and complex, some consumers avoid the payment method or abandon it before completing transactions. It鈥檚 also largely unavailable, which means providers that introduce it can gain an edge.

Credit card balances rose $38 billion in Q3鈥攁 15% increase YoY, and the biggest spike in over 20 years, per the Federal Reserve Bank of New York, as consumers take on more debt to cope with rising prices.

Net income rose 15% YoY to $8.2 billion while revenue increased 13% YoY to $26.3 billion, driven by higher rates along with loan growth. Net interest income jumped 25% YoY to $14.4 billion. Despite CEO Brian Moynihan saying 鈥渆very business segment performed well,鈥� BofA plans to cut up to 4,000 jobs before the end of June.

With debt mounting and subscriber additions slowing, streaming services will focus more on revenues than market share. Financial stability will take precedence over spending wars aimed at attracting viewers. Cost cutting is in vogue. Warner Bros. Discovery wants to cut debt.

All credit cards meeting the above criteria are ranked based on the size of their respective issuer鈥檚 2022 year-end domestic credit card loans outstanding, starting with the largest issuer, until the allotment of 10 credit cards was met. What did we change this year?

Consumers may be overextending themselves: 42% of US users said they鈥檝e made a late payment on a BNPL loan, per March 2022 polling by LendingTree. And because most BNPL payments aren鈥檛 reported to credit bureaus, consumers can take out multiple loans across providers to make ends meet, which increases their chances of defaulting.

More than 35% of US households used credit or loans to cover spending needs over a one-week period in December, up from about 32% in November, per a Census Bureau survey. And if economic headwinds get worse, some consumers may struggle to pay back that debt鈥攚hich could cause headaches for issuers. This would increase the risk of defaults and hurt lenders鈥� balance sheets.

Financial factors behind that anxiety include the fear of an unexpected expense (85%) or a family-related expense (69%), housing costs (68%), and credit card debt (54%).

And 13.6% of respondents said having a line of credit available in case of emergencies was important. The bigger picture: Secured cards are no longer the only option for credit invisibles who want to start or restart their credit card journeys. Subscription credit cards are growing in popularity as introductory lending tools.

Biased AI systems result in unfair and discriminatory outcomes, whether it's denying a credit card application, a mortgage application, whatever the case may be, it can really have big impacts on everyday consumer lives if they get it wrong. Jacob Bourne (15:56):. Yeah. And I think we can all be in agreement that all of these five are really serious issues and this one is no different.

With hard credit checks, GreenSky can help ensure its loans go to those who are most likely to pay them back. While this might limit the number of loans it can offer, it helps protect consumers and reduces the risk of defaults.

The trade groups are primarily calling for the inclusion of mortgage and auto lenders. For example, Rocket Mortgage dominates the mortgage market, originating more than 1.2 million loans worth $340 billion in 2021. Data privacy can still stall: Consumer data security and privacy was another main topic in the comments.

Some consumers may not be able to pay off their installment loans, leading to higher delinquencies and potentially an increase in defaults for the BNPL providers. Dig deeper: Check out our Retail & Ecommerce Briefing鈥檚 take on Cyber Monday sales.

US-based Tillable works with Evergreen Bank to provide farmland mortgages, refinancing, operating loans and rental financing. UK-based Oxbury offers lending services to British farmers and savings accounts that support farmers to individual or business customers.

Sometimes they鈥檙e followed by videos offering tips on budgeting products, how to avoid debt, explanations of new saving trends such as cash stuffing, and products with targeted advertising. In short, videos often lead young consumers to feel anxiety about their financial situations, but also instill an urge to buy products that show up on their feeds鈥攁 confusing mixture of cortisol and serotonin.

Gen Zers have an average of $2,589 in credit card debt. This is not quite on par with millennials, but it provides a runway for banks to grow their portfolios with this generation. Banks should focus on giving Gen Z a financial foundation to access other forms of credit, like mortgages: Many Gen Zers believe they will never own a home because they can鈥檛 save for a down payment.