There were the first signs of recovery in consumer credit in 2025 after interest rate cuts were seen in the early part of the year. Credit providers and banks focused on responsible lending practices while also looking to streamline application processes to provide added convenience to the customer journey.

Total consumer credit in Chile’s outstanding balance saw a double-digit rise in current terms in 2025; faster than the 2024 increase. While the total outstanding balance of consumer credit is projected to continue rising in the forecast period, its trajectory is expected be shaped by several key factors, including employment recovery, wage growth and consumer confidence. These elements are closely linked to inflation and interest rate trends, which play a central role in influencing both the dem

Consumer credit maintained its upward trajectory in 2025, with solid value growth in both gross lending and outstanding balances, particularly in durables lending, even amid an uncertain macroeconomic environment. Mexico is a highly attractive country for fintech companies; however, given its maturity stage, it is essential that they have a solid business model to enter.

Consumer credit saw growth in both outstanding balance value and gross lending value in 2025, supported by the continued recovery of card lending, the stabilising of household finances, and the ongoing digitalisation process. Buy Now, Pay Later services also continued to expand, especially within household appliances, technology, and travel.

BNPL continues to soar while tariffs boosted auto lending in 2025. Changes to support for students is also resulting in more students turning to education lending. Further changes to government regulations are expected to impact consumer credit in the forecast period, with cuts to ACA subsidies for example likely to increase demand for medical lending.

In 2025, consumer credit in the United Arab Emirates saw outstanding balance rise at a similar rate to 2023 and 2024. The demand for consumer credit was driven by household spending, increased use of credit cards for day-to-day purchases, and a higher appetite for personal loans linked to housing, education and lifestyle upgrades. While the cost-of-living in the United Arab Emirates exerted pressure on household budgets, consumers continued to rely on credit to manage larger expenses, supported

Consumer credit outstanding balance values rose in China in 2025, supported by lower borrowing costs following the PBOC’s May loan prime rate cut and by the NFRA’s interest subsidy scheme for personal consumption loans. Growth was concentrated in non-card lending, with auto lending the most dynamic segment as passenger car sales increased and new energy vehicle brands used zero down payment and interest-free loan offers to stimulate uptake. BNPL also expanded but remained largely confined to maj

The end of negative interest rates, which had persisted since 2016, changed consumer credit in Japan in 2024. Another key factor shaping consumer credit in 2025 was an ongoing increase in wealth inequality, with a rising number of high-net-worth individuals at the same time as many people continued to struggle to make ends meet. This is leading to a segmented consumer credit environment, involving luxury lending alongside survival-driven borrowing.

Consumer credit in the UK saw growth across all metrics in 2025, as local consumers continued to borrow to cope with elevated living costs, despite an easing in the rate of inflation.

Consumer credit is growing in terms of both outstanding balance and gross lending. Credit cards retain a key role in the consumer credit ecosystem, while secured and hybrid lending products are becoming increasingly prominent.

Consumer credit is growing in terms of both outstanding balance and gross lending. In a challenging economic environment, many Brazilian consumers are being forced to turn to credit options to meet their household spending needs.

The outstanding balance of consumer credit grew moderately in 2025. The Reserve Bank of Australia lowered interest rates, enabling more debt to be repaid, while gross lending was lower than in previous years of the review period.

Consumer credit in Singapore saw gross lending and outstanding balance levels rise in 2025. Gross lending rose at a faster rate than in 2024. Meanwhile, outstanding balance saw a slower rise. Singapore’s total consumer credit outstanding balance rose largely due to the continued increase in credit card debt and personal loans. This growth was driven by consumers deferring repayments amid high interest rates and rising living costs. According to the Monetary Authority of Singapore (MAS), credit c

Following the high inflation in recent years, consumer demand for credit in Austria in 2024 still increased only very slowly, and still particularly slowly for durables such as consumer electronics, appliances, furniture, and new cars, which was also reflected in the demand for consumer credit. The relatively conservative and cautious attitude of Austrian consumers towards money and loans has once again been demonstrated by the fact that, in such uncertain phases, there is no run on loans in ord

Consumer credit gross lending and the outstanding balance are set to continue to rise in Morocco in 2024. However, household credit continues to show significant disparities, with a positive correlation between income levels and debt rates in Morocco. The latest report from Bank Al-Maghrib reflects this trend, which indicates that individuals with high incomes exceeding MAD6,000 per month hold the majority of the debt, at 64% with the debt ratio reaching 34% of their income for those earning mor

Consumer credit in Denmark in 2024 saw the continuation of trends already underway - in both gross lending and outstanding balance terms, consumer credit experienced faster growth than mortgages and housing loans. This reflects a continued preference among consumers for short-term borrowing, with consumer credit expanding at a stronger pace compared to housing loans. Within gross lending, card lending has increased its share of total consumer credit, highlighting the growing reliance on credit c

Consumer credit in the Czech Republic saw current value growth in total gross lending slow in 2024, while growth in the overall outstanding balance was only marginally stronger than in 2023. This was mainly due to reduced demand in card lending, the single largest category in gross lending terms by some distance. With inflationary pressures having receded significantly from the highs witnessed in the previous two years, Czechs became less dependent on credit cards to pay for essential needs and

Buy Now, Pay Later (BNPL) services continue to expand in Spain in 2024. Indeed, a 2023 study by Forbes indicates that one-in-three Spanish consumers use BNPL as a payment option. For some years now, consumers and businesses alike have enjoyed the relatively regulation-free space of BNPL, however, in 2023, the European Commission updated regulations around consumer credit to reflect the increased use of alternative and digital credit options, such as BNPL. The Consumer Credit Directive 2 (CCD2) e

Demand for formal consumer credit in Nigeria continues to be affected by low access to credit among households operating within the informal economy. Although the government lifted restrictions on foreign-denominated cards in 2023, the ongoing depreciation of the Naira dampened demand for foreign-denominated credit cards. The situation was exacerbated by rising interest rates from the Central Bank to tackle rising inflation. Higher interest rates effectively reduced demand for large loans, inclu

Ukraine’s consumer credit market in 2024 remained heavily influenced by the ongoing war, initiated by Russia in February 2022. Although the initial shock of the invasion has been absorbed and most people and businesses residing in areas controlled by the Ukrainian government have tried to adapt to the circumstances, the level of uncertainty remained unprecedented. Despite these challenges, Ukraine’s economy and banking sector, supported by aid from the West, saw a positive ending to 2024, with c

Consumer credit registered modest growth in gross lending and outstanding balances over the review period, as ongoing economic uncertainty led many consumers to retain a conservative approach towards borrowing. In 2024, there was a notable slowdown in gross lending as interest rates rose dramatically from 8.5% in June 2023 to 50% in March 2024. Some consumers were put off by the sharp rise in borrowing costs.

Israel’s consumer credit market saw rising demand for home lending in 2024. Loans secured with a lien on a savings account are typically more attractive to consumers due to their lower interest rates compared to other types of loans. However, the segment saw a decline mid-review period, largely driven by shifting market conditions. These loans are often used to fund down payments on houses, but with the housing market cooling significantly, demand for such loans decreased. Rising living costs ha

With credit cards and store cards remaining the primary point of entry to the South African credit system, the flood of generation Z shoppers into the workforce has been driving demand for such lending. Demand for card lending has also benefited from improvements in online safety measures, attracting tech-savvy users, as reflected in the increased usage of digital wallets linked to credit cards. In parallel, the revolving nature of credit cards and store cards is also resulting in users prioriti

Consumer credit rebounded in Hungary in 2024, compared to 2023 which was a challenging year for consumers due to high inflation and increased borrowing costs, with interest rates peaking. However, 2024 brought more favourable conditions, including lower interest rates, reduced APR, and an improved financial outlook. This has led to a renewed willingness for consumers to apply for loans. Additionally, delayed purchases and the launch of new home renovation and energy-efficient transformation prog