The NTC consumer profile
We analyzed NTC consumers who entered the Canadian credit market for the first time during 2019 and 2020, and compared their profile to consumers active in the credit market for at least the prior two years. We learned:
Their credit journey
To learn more about what happens after they open their first trade, we followed the credit journey of around 900K NTC Canadian consumers. We learned these consumers offer a valuable growth proposition for card issuers because:
The NTC growth potential
We then evaluated additional products and subsequent trades and discovered:
Strategy implications for lenders
Although Canadian lenders have tremendous opportunities within the NTC segment, our study indicates a need for enhanced lending strategies, especially around:
PANDEMIC IMPACT: The pandemic slowed NTC growth. Are you prepared for pent-up demand that may emerge in the post-pandemic world?
CREDIT DEMAND: Credit cards are the go-to product for NTC consumers. Are you leveraging trended credit data to optimize line assignments for risk and return?
LOYALTY: NTC consumers aren’t very loyal regarding follow-on product originations. Are you proactively predicting their credit needs?
PERFORMANCE: Credit performance is generally healthy comparable to established consumers. Are you leveraging friction-right channels and onboarding solutions to acquire NTC consumers?
TransUnion solutions and enhanced strategies provide a unique lens by which to assess/gauge NTC consumers throughout their credit lifecycle
To learn how TransUnion can help you leverage growth prospects across every segment of the credit market, contact your TransUnion representative.