Rising Consumer Delinquencies and Persistent Wealth Gap Foreseen in North America: FICO Survey
In addition, nearly 74 percent of those surveyed agreed that "the wealth gap poses a risk to the financial system in
"It is clear bankers are concerned about the wealth gap," said Dr.
Credit Spigot Still Open
Regardless of the potential growth of consumer delinquencies, 57 percent of those polled expected credit card debt to rise in the first half of 2015. Respondents also expected consumer demand for credit to remain strong, with 58 percent of bankers surveyed expecting the amount of new credit requested by consumers to increase. Just 6 percent expected a decrease.
Less Pessimism for Student Lending
Among those polled, 44 percent expected delinquencies on student loans to increase over the next six months. This is the second consecutive quarter in which less than half of those surveyed expected the student loan situation to worsen. In FICO's last survey, 41 percent expected delinquencies on student loans to worsen.
"While I wouldn't characterize these results as optimistic, they are the two least pessimistic results we've seen on the topic of student loans in the four-year history of our survey," said Jennings. "It reflects the improvement we saw in the job market in 2014. While there is still significant concern about student loan defaults, lenders recognize that jobs are becoming a bit easier to find."
A detailed report of FICO's quarterly survey is available here. The survey included responses from 148 risk managers at banks throughout the U.S. and
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