TransUnion Canada Improves Credit Access for Newcomers and Young Canadians with New Credit Risk Score

Core Insights - TransUnion Canada is enhancing credit access for new Canadians and those new to the credit market through the TruVision Trended Risk Score, which provides a comprehensive view of payment behavior and creditworthiness [1][9] - The TruVision Trended Risk Score utilizes new algorithms and data to better predict future risk for New-to-Credit consumers, enabling lenders to confidently offer credit [1][2] Group 1: Market Trends - New Canadians and young consumers are a significant part of Canada's population growth, with international migration accounting for 92% of growth in Q3 2024 [2] - In 2024, New-to-Credit consumers represented 28% of new credit cards opened and 22% of all credit products, with new Canadians estimated to account for over half of that volume [2] Group 2: Consumer Behavior - Gen Z Canadians, born between 1997 and 2012, are the fastest-growing segment in credit card usage, showing an 18% year-over-year growth in balances, with total credit balances reaching $142 billion as of December 2024 [3] - This generation's credit balance growth significantly outpaces the overall growth rate of 4.5% [3] Group 3: Risk Assessment - Gen Z consumers exhibit a higher risk profile, with a delinquency rate of 0.57%, compared to an average of 0.28% for other generations as of Q4 2024 [4] - Lenders can still target this demographic for growth by employing effective credit decisioning tools to manage associated risks [4][5] Group 4: Strategic Insights - In a challenging macroeconomic environment, lenders are encouraged to modernize credit strategies to extend credit to young Canadians and new immigrants [5] - Companies that adapt to rapid changes in consumers' financial health will be better positioned to capture emerging consumer segments [5]