PODCAST | Growing SA’s consumer credit market

The economics of SA’s consumer credit market is the focus of this edition of the Business Day Spotlight. 

Host Mudiwa Gavaza is joined by Regan Adams, CEO of RCS, the consumer finance arm of BNP Paribas.

Adams says the consumer credit market in SA is worth more than R2-trillion, fuelled predominantly by home loans and vehicle finance, which make up about 90% of the pie. 

Credit facilities or unsecured credit transactions, mainly in the retail space, make up about 10%. This is the area in which unsecured lender RCS operates.

Adams explains that credit and store cards, as sub-components of the credit facilities segment, have driven growth in this part of the market.

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“Interestingly, SA’s demographic and economic profile lends itself more to the use of store cards, which outnumber credit cards by almost 3:1. For many, store cards provide an all-important entry point into the credit active population,” he says. 

He discusses some of the initiatives RCS has developed to grow, particularly in e-commerce where the company encourages the use store cards online. 

Topics of discussion include: local consumer credit statistics; the market for store cards; the power of data; credit beyond the Covid-19 pandemic; and regulatory hurdles. 

Business Day Spotlight is a MultimediaLIVE Production. 

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