Data analysis and insight report on young credit card consumer groups

The young credit card consumer group is the mainstream group of consumer finance. Data analysis and insights on them make our credit business decisions more scientific.

Background of data analysis and insight reporting

Why do you make such a report? We surveyed mainstream financial institutions and found that they have the same demands: focus on customer quality, focus on customer group profitability, and focus on young consumer groups. They believe that young people are the mainstream market consumer group. Therefore, many financial institutions have very different customer groups. They are also state-owned banks, joint-stock banks and commercial banks. When doing data analysis for them, the age level, consumption level and risk profile of their customers are different. They are all relatively large, but from the customer perspective, they generally focus on some young consumer groups. Therefore, we focused on data analysis of this group.

Who are the young consumer groups?

Based on the research and implementation experience of data analysis projects of different financial institutions, we define the young consumer group: consumers aged 25 to 35 years old. How is this group defined? Based on Sina's overall market data, we found that 70% of the mainstream and active users of credit cards are young people aged 18 to 35. At the same time, we found a trend. From 2014 to 2016, the absolute proportion of young consumer groups has been very high and continues to grow. For people over the age of 35, activity levels are declining. So why is the watershed not 18 but 25? We found that the overall consumption income of people under the age of 25 is low, but the consumption level starts to rise significantly after the age of 25.

Who loves overdrafts

We often hear: Spend tomorrow’s money to fulfill today’s dream. Even Jack Ma of Hangzhou said, “Young people must learn to spend tomorrow’s money.” According to our data research and analysis, we found that although young people aged 18 to 24 now have a more common habit of overdraft consumption, statistical results show that young people aged 25 to 35 have significantly higher overdraft consumption ability than those aged 18 to 24. . We analyze the reasons and there are two aspects. First, overdraft consumption ability is based on income ability. Data shows that although people aged 18 to 35 are more accustomed to overdraft consumption, it is generally positively related to income. Starting from the age of 25, personal income increases significantly, far exceeding that of the 18 to 24-year-old group. Second, overdraft consumption such as housing loans and car loans are the main overdraft consumption items for young people. According to research, most young people take on mortgages, car loans and milk powder loans between the ages of 25 and 35.

What affects the consumption items of young people

We conducted a secondary analysis for people aged 25 to 35. It is found that although they are all credit purchases, the consumption content is not exactly the same. We found that the ratio of overdraft consumption among people aged 25 to 29 is about twice as high as that of the general population. Therefore, we believe that it is due to the pressure of house and children that young people aged 25 to 29 overdraft. Consumption is relatively high. By the age of 30 to 35, compared with those aged 25 to 29, the proportion of child slaves has declined, but the proportion of house slaves and car slaves remains high. At the same time, personal small and micro enterprise loans have also been added. To sum up, Chinese people’s concept of consumption is still relatively traditional. So why do young consumer groups have such high overdrafts? In fact, it is mainly due to rigid needs such as houses, cars, and children. These demands are the pressures of life, things that young people have to do. They are not the young people we traditionally think of, who have no money but have to overdraft to buy luxury goods and consume high-end services. Enjoying overdraft is not the mainstream, but overdrafting in advance due to the pressure of life is the mainstream. It is difficult for young people to stand up at 30 due to current house prices and commodity prices. And with the help of credit card consumption, when people reach 30, they still have the opportunity to "stand up" seemingly "decently".

What are the differences between men and women in credit consumption?

Men are from Mars and women are from Venus. If we are young men and women at the same time, what is the difference in credit consumption? What do they each like to consume?

We conducted data analysis on this issue and divided young people into men and women for differential analysis.

Men and women are really people from two different planets, and their preferred consumption types are almost completely different. We first divide young men into three age groups, 18 to 24 years old, 25 to 29 years old, and 30 to 35 years old. We will find that digital and technology are their eternal themes, and everyone from young to old loves digital electronic products. Those in their 20s to 25 years old have computers, and those in their 30s also have some computers for office work in the IT field. So the clock revolves around the theme of digital, and there are some differences among different age groups. From the age of 18 to 24, I play digital by myself. At the age of 25 to 29, I earn money to buy office digital and start to pay attention to financial things. At the age of 30 to 35, I start to support my family and pay attention to household digital and maternal and child digital.

Girls are relatively simple, just beautiful. From girls to young men to young women, makeup and beauty are an everlasting theme. But when I was a girl, I still watched games and animations. When I was a teenager, I started to pay attention to education and fashion. When I was 30, I started to pay attention to mother and baby. According to our statistics, at the age of 30, maternal and infant consumption ranks first among women’s credit consumption, and women pay more attention to their children than themselves for the first time. So we find that women revolve around the theme of beauty, with different focuses in different stages. This area is very avant-garde in the traditional financial aspect of credit cards. There are women's cards for women, and there are some discount cards in shopping malls, Vipshop, etc., which can effectively catch the attention of women.

For movies, music, gossipy entertainment stars, meal tickets, and catering, these are also the topics that young people pay most attention to, so membership of some traffic and video websites is still very popular. We have also found that in these categories Generally just attention, but large consumption is not included in these products. In fact, whether it is consumer finance or credit cards, the entire fee installment is the main source of income. Let’s take a look at which young people have credit needs, which people have greater credit needs, how can we attract them, and what should we do to attract them? Such rights and interests can be attracted.

Who do banks like to lend money to

Generally speaking, for consumer credit loans, banks like to lend money to low-risk customer groups. So, which customer groups have low credit risk? Why do these customer groups have low credit risk? How to identify these customer groups?

First of all, based on age, 25 to 35 years old are the most popular for bank consumer credit business. These groups generally have huge demand for long-term large-amount credit loans due to their consumption habits and rigid needs such as buying houses and cars. At the same time, because these groups have relatively high incomes, have a fixed source of income, and their general income will continue to increase, they are less likely to delay or give up on loan repayments, and their credit risks are lower. Of course, people aged 18 to 24 have the highest demand for consumer credit, but because their income is low and unstable, they have the highest risk, so the consumer credit business does not favor them. Therefore, strong economic ability, high demand for consumer overdrafts, and low credit risk are the salient characteristics of this group of people.

Secondly, gender division. Banks favor women over men, even though men are in greater demand, and banks prefer women. The proportion of male cardholders is 40% lower than that of applicants, while the proportion of female cardholders is 48% higher than that of applicants. But data shows that young men's risk of breach of trust is 1.3 times that of women. Financial institutions hope to find some white-collar women because the risk is low.

Again, identity division. A large number of credit card applicants aged 18 to 24 are either students or people with unstable jobs. This group has the highest credit demand, but banks are least interested in them. Therefore, it will be difficult for students and those with unstable jobs to obtain credit loans from banks. The needs of small and micro business owners are high, but the risks are also high, which banks don't like. Fortunately, the car owners have shown unique advantages. The credit demand of car owners is very high, 1.3 times that of people without cars, but the risk is 65% lower, so this group is very popular with banks. Homeowners are also a group of people that traditional financial institutions are very fond of. When applying for credit, they are required to own a house, a car and a provident fund. The demand for car credit for those who own a house is very low. The credit demand for those who do not own a house accounts for 80%, while those who own a house only account for 20%. Although people who own houses have less demand for credit, banks still like it very much because the risk is very low.

Finally

It is so important to accumulate wealth between the ages of 25 and 35. The age between 25 and 35 is also the stage where you can only spend with peace of mind. Houses, cars, and children have made young people the mainstay of credit consumption, and they have also become the favorites of financial institutions. So for our different financial institutions and the needs of different credit users, how can we use different product solutions to meet them? So this also gives us a thought, that is, what kind of group of people we want to target, and what rights and activities we should use to attract the people in need. Perhaps, the data analysis and insight report on young credit card consumer groups is a trustworthy reference