Seventy-nine percent of respondents to the company’s survey anticipated their institution’s consumer loan volume would rise or remain the same this year. Only 5 percent predicted a decline and 16 percent weren’t sure. Institutions with more than $250 million in assets were most likely to anticipate an increase in loan volume.
Financial institutions responding to the Wolters Kluwer Financial Services survey cited a soft economy (30 percent), stricter compliance regulations (24 percent), reduced loan demand (18 percent), and increased competition (17 percent) as the most common barriers to increasing consumer loan volume.
A number of independent indicators have recently shown potential stabilization in consumer credit broadly, and credit cards specifically. Modest increases in credit card spending and outstandings, if sustained, could drive a more positive years for credit cards in 2011.