Personal loans on the rise

15.8 million consumers have a personal loan

Total personal loan balances were $102 billion at the end of 2016

Baby Boomers make up the largest share of personal loan users. Surprisingly, the largest shares of FinTech loans go to Baby Boomers and Gen X.

Generational Breakdown

  • Silent
    1945 and previous
  • Baby Boomers
    1946-1964
  • Gen X
    1965-1979
  • Millennials
    1980-1994
  • Gen Z
    1995-current

Personal Loans by Generation

As FinTechs entered the market, the assumption is Millennial consumers are driving the personal loan growth. Is that really the case?

Fintech Share by Generation

FinTechs have an opportunity to gain more market share with Millennials, who are the largest living generation. At the end of 2016, only 26.3% of FinTech customers were Millennials.

Q4 2016 Industry Insights Report - Mortgage

The mortgage delinquency rate concluded 2016 at 2.28%, and has now declined every quarter on a quarter-over-quarter basis since Q3 2013.

Mortgage - Delinquency Rates

The average mortgage balance reached a post-Recession high of $194,415 in Q4 2016.

Mortgage - Average Balance per Consumer

Q4 2016 Industry Insights Report - Auto

The auto delinquency rate reached 1.44% to close 2016, a 13.4% increase from 1.27% in Q4 2015. Auto delinquency is at its highest level since the Q4 2009 reading of 1.59%.

Auto - Delinquency Rates

The average auto balance per consumer also rose slightly to $18,391, up from $18,004 in Q4 2015.

Auto - Average Balance per Consumer

Q4 2016 Industry Insights Report - Credit

The credit card delinquency rate reached 1.79% in Q4 2016, an increase of 12.6% from 1.59% in Q4 2015. The credit card delinquency rate remains more than a full point below its peak in Q4 2009 (2.97%).

Credit Cards - Delinquency Rates

The average card balance per consumer grew 2.8% to $5,486, up from $5,337 at year-end 2015 and the highest level since $5,609 in Q4 2010.

Credit Cards - Average Balance per Consumer

Q4 2016 Industry Insights Report - Personal loans

The personal loan delinquency rate was 3.83% in Q4 2016, the highest Q4 reading since Q4 2013 and up from 3.62% in Q4 2015.

Personal Loans- Delinquency Rates

The average personal loan balance reached $7,640 in Q4 2016, up from $7,360 in Q4 2015.

Personal Loans - Average Balance per Consumer