Study reveals surge in self-credit monitoring among Hong Kong residents

The study indicates that the number of consumers in Hong Kong signing up for credit monitoring services with TransUnion has surged by over 194% during the three-month period ending September 2023 compared to the same timeframe in 2021, marking one of the highest growth rates globally. 

Among the surveyed residents, approximately 84% expressed the importance of monitoring their credit scores. Notably, almost half (45%) of the respondents stated that they monitored their credit reports with the aim of acquiring new credit, while 28% cited the desire to better manage their debt levels and prevent fraudulent activities. Additionally, 27% sought to enhance their credit profiles. 

The study underscores the increasing awareness among consumers regarding the significance of maintaining a solid credit history for accessing credit. Furthermore, it delves into the diverse motivations and outcomes associated with credit monitoring, based on millions of consumer credit behaviours across various markets, including Hong Kong. 

Officials from International Research and Consulting at TransUnion, noted the expanding awareness and usage of consumer credit monitoring, attributing it partly to the pandemic's impact on consumer finances and the heightened awareness of credit fraud prevention.

Different segments of credit monitoring consumers 

The study identified three distinct segments of credit monitoring consumers in Hong Kong: Credit Seekers, Credit Managers, and Credit Improvers. Credit Seekers, constituting nearly half of the monitoring population, primarily aim to attain new credit, indicating a heightened demand for credit products. Credit Managers, comprising 28% of consumers, focus on paying down debt and detecting fraud, while Credit Improvers (27%) seek to enhance their credit scores through monitoring and strategic planning. 

TransUnion representatives emphasised the importance of financial literacy and awareness among these consumer segments, particularly as younger generations enter the credit market. Moreover, the study revealed a growing consumer expectation for financial institutions to provide free credit monitoring services. Approximately 32% of respondents expressed willingness to continue banking with a lender offering such services, highlighting the potential benefits for both consumers and lenders in fostering stronger relationships.