South Africa had a more than 8% increase in consumers who entered the credit market for the first time in 2022, with most opening retail clothing accounts and funding new expenses. In 2022, the number of new-to-credit consumers rose to 810 000, compared to nearly 750 000 in 2021, according to a TransUnion survey that tracks the behaviour of consumers who are new to credit. Of these, 58% opened a clothing account while 13% opted for a non-bank personal loan.
“In South Africa where the most common first product was a clothing account, this same product type was also the most common subsequent product opened,” TransUnion notes in the report. “It makes logical sense that subsequently opened products are of the same type because these consumers have greater familiarity and comfort with these products and can continue their credit journeys in a more informed way.