Credit card inquiry volumes have recovered fully from the trough seen in April 2020 and rose to 106 per cent by October 2020 when compared to the last year, suggesting that consumer economic activity has materially improved since the easing of Covid-19 lockdown measures.
According to TransUnion Cibil, a credit information bureau, credit card popularity in traditionally cash driven, non-metro locations has risen with more consumers seeking this product. October 2020 inquiry volumes in non-metro locations increased by 23 per cent on a year-on-year basis as compared to a decline of 10 per cent for metro locations.
Credit card origination volumes have also started picking up gradually as demand has resumed. Credit card origination volumes for July 2020 were at 37 per cent of July 2019 levels. This decline is not as sharp as the one seen in the lockdown period of April 2020, where origination volumes slipped to 9 per cent of April 2019 levels.
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