Filene report predicts low consumer borrowing in near future

More than 90% of consumers aren’t planning to borrow from a financial institution in the next six months, and 80% of consumers are worried about their current debt levels, according to a new study from the Filene Research Institute.

Titled “Confidence in Borrowing: Survey 2016,” the report’s research was collected in September 2016 and was authored by Hope Jensen Schau, professor of marketing at the University of Arizona and Ignacio Luri, a doctoral candidate in marketing at the University of Arizona.

“Consumer borrowing is an important macro-economic measure because it parallels consumer spending and serves as an important measure of consumer confidence and health,” said Schau in a statement. “Loan growth is also an important driver of sustainability for credit unions that currently depend on consumer lending and mortgage lending for the majority of their earnings.”

Filene noted that credit unions understand the need to offer members consumer loan products, but might be going about marketing them in the wrong way.

“Very few people are completely closed to debt, and that is an opportunity for credit unions,” stated Luri. “Credit unions should seek to understand more about the reasons for when and how consumers feel confident and try to make borrowing a less stressful topic for their members.”