Consumer Credit in Austria

2020 IMPACT

Austria sees fall in loan demand and rise in defaults due to COVID-19

The sudden economic downturn resulting from the COVID-19 pandemic led to an abrupt decline in demand for consumer credit in Austria. As a result of the challenging economic environment, consumer credit suffered from a significant drop in consumer confidence and a consequent reduction in appetite for purchases of big-ticket items via loans.

Offer of revolving credit fuelling interest in card lending

Although still at a relatively low level when compared with other Western European countries, gross card lending recorded strong growth over the review period. Despite the recent crisis, this trend is expected to continue, with card lending thus set to be the best performing category in consumer credit over the forecast period.

Conservative Austrian consumers continue to prefer traditional banks

Austrian consumers in need of a loan tend to still go to their traditional family bank and talk to a trusted adviser first, often not even comparing credit terms and conditions with other lenders. Consequently, the four major retail banks - UniCredit Bank Austria, Erste Bank der oesterreichischen Sparkassen, Raiffeisen Bank International and BAWAG PSK - continue to lead consumer credit in Austria.

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