Insights from TransUnion’s Q2 2024 Consumer Pulse Study
Overview: The TransUnion Q2 2024 Consumer Pulse Study offers a comprehensive view of South African consumer sentiments and financial behaviours amidst a backdrop of economic uncertainty. Despite a slight decrease in inflation to 5.2% in April, consumers remain concerned about everyday costs, interest rates, and job security. However, there is a prevailing optimism about future finances, with 71% of respondents feeling positive about their financial outlook over the next 12 months and 72% expecting income increases.
Key financial concerns: The study highlights the top financial concerns for consumers in the coming year, with inflation (77%), interest rates (55%), and employment (52%) being the most pressing issues. This concern aligns with a high unemployment rate, which rose to 32.9% in Q1 2024. Despite these challenges, a notable portion of consumers (39%) reported an increase in household income over the past three months, while 40% reported stable incomes.
Fraud prevention and consumer education: Fraudulent activities continue to pose significant risks, with 49% of consumers targeted by scams and 10% falling victim. Common fraud schemes include money/gift card scams, smishing, and phishing. The persistent threat of fraud underscores the need for enhanced consumer education and awareness programs to mitigate these risks.
Household spending and debt management: Consumer spending behaviours reflect cautious optimism. While 37% of consumers anticipate difficulties in meeting debt obligations, 63% are confident they will manage. Many consumers have adopted proactive measures, such as paying down debt faster (30%), saving more in emergency funds (26%), and saving for retirement (20%). Anticipated spending patterns indicate a focus on essential expenses, with plans to increase spending on bills and loans while cutting back on discretionary purchases.
Credit access and financial inclusion: Access to credit remains crucial, with 91% of consumers acknowledging its importance for achieving financial goals. However, only 38% feel they have sufficient access to credit, particularly among Millennials (47%) and Gen Z (32%). The study shows that while many plan to apply for new credit or refinance existing credit, a significant portion (49%) abandon their plans due to high financing costs and perceived likelihood of rejection.
Identity protection and data privacy: Concerns about identity theft and data privacy are prevalent, with 89% of consumers worried about sharing personal information. The increase in identity theft incidents highlights the necessity for robust data protection measures and on-going consumer education to safeguard against fraud.
Conclusion: The TransUnion Q2 2024 Consumer Pulse Study provides valuable insights into the economic challenges and opportunities facing South African consumers. It emphasises the need for financial education, robust fraud prevention strategies, and improved access to credit to support financial stability and growth. As consumers navigate these uncertain times, their resilience and proactive financial management will be crucial in shaping a secure financial future.
Sources:
by