Hong Kong sees 194% surge in credit monitoring enrollment

About 84% of Hong Kong consumers deemed credit monitoring important.

Consumers in Hong Kong signing up for credit monitoring services in the three months leading up to September 2023 increased by over 194%, compared to the same period in 2021, marking one of the highest growth rates globally, according to a report by TransUnion.

The report also revealed that 45% of respondents started monitoring to open a new credit account, 28% aimed to manage debt levels and prevent fraud, and 27% looked to enhance their credit profiles.

In Hong Kong, 84% of surveyed consumers deemed credit monitoring important, with 15% considering it extremely vital. Additionally, 59% of these consumers check their credit reports at least quarterly.

The study analysed credit behaviours in markets in Hong Kong, Brazil, Canada, Chile, Colombia, Dominican Republic, Guatemala, India, Philippines, South Africa, the United Kingdom, and the United States.

"Consumer credit monitoring has expanded considerably in awareness and usage over the past decade. This expansion has recently been fuelled by the impact of the pandemic on consumer finances and the heightened awareness of preventing becoming victims of credit fraud," said Nidhi Verma, co-author of the study and vice president of International Research and Consulting at TransUnion. 

"Our study measures the importance of credit education and quantifies the benefits that credit monitoring consumers experience," she added.

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Surveyed Hong Kong consumers also cited various reasons for signing up for credit monitoring services, including the free nature of the service (33%), protection against fraud (26%), and credit score improvement (25%). 

Over time, consumers reported additional benefits such as gaining visibility into credit report changes (39%), learning credit score management (36%), accessing better credit offers (33%), and understanding regular payment practices (31%).

Moreover, the study identified three distinct segments of credit monitoring consumers, including credit seekers (45%), credit managers (28%), and credit improvers (27%).

The study also revealed that 32% of Hong Kong consumers would continue banking with a lender offering free credit monitoring. About 27% would prefer such lenders when opening new products and 35% would prioritise payments to these lenders over others.

"More and more consumers now expect financial institutions to offer free credit monitoring services, as it provides them the tools to improve their credit profiles, better manage existing credit and seek new credit in the future," said Weihan Sun, principal of Research and Consulting for Asia Pacific at TransUnion.

"Lenders have a prime opportunity to empower consumers with credit education tools that can drive confident growth and inspire consumer trust," added Sun.