Banks Association data reveals: Citizens are keeping their economy afloat with credit cards

According to data compiled by HangiKredi from the Banks Association, significant statistics regarding 2023 have come to light.

CITIZENS SEARCHED FOR INTEREST-FREE CAMPAIGNS

According to the Banks Association of Turkey (TBB) data, while banks gained 18 million new customers in 2022, 4 million people became bank customers through "remote customer acquisition."

In 2023, 1 out of every 3 people who became a bank customer preferred digital banking.

While banks gained 18.5 million new customers in 2023, the number of people who completed the customer onboarding process via video calls through banks' mobile applications rose to 6.5 million.

In 2023, banks largely built their strategies to expand market share and acquire new customers on 0% interest installment cash advance campaigns. Unlike personal loans, these interest-free campaigns offered through credit cards were attractive to consumers.

CUSTOMERS TURNED TO INTEREST-FREE PRODUCTS

Starting from June, the interest rate hikes implemented by the Central Bank of the Republic of Turkey (TCMB) were also reflected in market interest rates. According to TCMB data, the interest rate reached levels of 64% annually in January 2024.

For this reason, customers' orientation toward interest-free products increased even further, especially in the second half of 2023.

AVERAGE PERSONAL LOAN AMOUNT FOR INDIVIDUAL CUSTOMERS WAS 35 THOUSAND LIRA

According to HangiKredi data, while users' search for loans continued, approximately 30% of the credit product volume shifted to cash advance opportunities. It was observed that the weight of these campaigns increased by 60% compared to the previous year.

Although installment cash advance campaigns were popular in 2023, personal loans continued to be preferred by customers. The personal loan volume of December 2022 reached 983 billion TL in 2023, showing an increase of 45%. In the first 9 months of 2023, the number of people using personal loans exceeded 20 million. This figure is expected to exceed 25 million according to the data to be announced by the TBB in March. The average personal loan usage amount for individual customers was 35,000 TL.

CREDIT CARD VOLUME INCREASED BY 158 PERCENT

Housing loan volume rose by 21% to 438 billion TL. Mortgage-backed housing sales in 2023 decreased by 36.6% compared to the previous year to 177,748, and the share of mortgage-backed housing sales in total housing sales was 14.5%. Vehicle loan volume increased by 93% to 95 billion TL. Due to high personal loan interest rates, consumer spending shifted more toward credit cards. The volume of credit cards reached 1.15 trillion in 2023 with an increase of 158%. According to BKM data, the number of credit cards, which was 99.5 million in 2022, reached 117.7 million in 2023 with an 18% increase.

News Source: 12punto