Credit market soars in 2024

Good news for the Italian credit market which closes 2024 with a decidedly positive balance sheet, driven by the strong growth of mortgages and the consolidation of BNPL and the use of digital channels. Requests for real estate mortgages recorded an increase of +54% in December compared to the same month of 2023. An increase that fits into the generally positive trend observed throughout the year (+15% compared to 2023). And the trend is similar for other credit indicators too. This is what emerges from “Credit Report” of December 2024, developed by Experian, global data tech company.

Mortgage trend: +54% in December, falling rates and recovering confidence

The real estate mortgage market has closed December cwith extraordinary growth, recording a +54% in requests compared to December 2023, with an average amount requested of 127,670 euros (+1.89% compared to November but a sharp decrease compared to the previous year, -24.13%) . This result, although mitigated by the physiological drop of -15% compared to November (traditionally a less active month for the real estate sector due to its holidays), – the report notes – confirms the strong recovery of the market during 2024. The decrease in rates of interest, observed in particular in the last two quarters of the year, played a fundamental role in supporting demand, making mortgages more accessible and convenient for consumers.

The Central Italy stands out as the most dynamic geographical area, with a market share of 29%, followed by the South (24.4%). Furthermore, the Millennial generation (between 30 and 45 years old) is confirmed as the most likely to purchase a house through financing, accounting for 53% of total requests, up by 7 percentage points compared to December 2023. GenZ, on the other hand, which represents the under 30s, seems to be in more difficulty in accessing credit, with only 11% of the total requests and a demand that is growing at a rather slow pace, of only 0.58 percentage points compared to the same period of last year.

Finally, in the comparison between applicants born in Italy and those born abroad, it emerges that for the latter, mortgages are the most requested form of financing compared to other products, with a share of 27.5% of the total requests.

Loan trend: holidays boost consumption, renting is preferred for the automotive sector

The loan market showed contrasting dynamics in December. Personal loans suffered a significant decline (-27% compared to November), but still recorded an overall growth of 26% compared to December 2023, with an average amount of 10,543 euros. Southern Italy represents the most active geographical area for personal loans (40%),

For finalized loanshowever, the growth recorded is +19% compared to December 2023, compared to a slight decline of -2% compared to November after the peak in demand led by Black Friday. The purchase of mobile phones remains the main motivation (44% of the total), followed by the purchase of new cars (18%) and used cars (14%). The pre-Christmas period also saw particular growth in the demand for home accessories (+7 percentage points compared to the previous year) and household appliances (+1.33 percentage points compared to the previous year).

In particular for the automotive segmentThen, 2024 represented a crucial year as regards financing methods, with a greater incidence of renting compared to both leasing and captive loans. Although the rentering arecorded a decline of -12% compared to November, demand increased overall by +19% compared to December 2023, while leasing suffered a flexion both compared to November (-6%) and compared to December 2023 (-5%) e captive loans they fell by -14% compared to November and remained rather stable compared to December 2023.

BNPL and online loans: young people and Southern Italy driving growth

The BNPL and the digital channel confirm themselves as the most dynamic segments of the credit market. The BNPL closed December with a growth of +33% compared to the same month in 2023 and +30% in 2024 compared to 2023, despite a physiological decline of -16% compared to November. The requests were concentrated in particular close to the Christmas holidays, with an increase of +18% in the week from 10 to 16 December compared to the previous one and of +25% compared to the same period of 2023. digital financing show an equally positive trend, with growth of 32% in 2024 compared to 2023.

The Southern Italy drives growth by market share for both products. The under 36s represent a significant share of the market for both BNPL (50%) and the digital channel (46%), confirming the key role of this consumer segment for more innovative credit products.