Rapid lending growth can take time to reveal credit risks. Monee’s rising provisions and JazzCash’s nano-loan expansion put underwriting in focus, while US research showed how earlier credit-card lending continues to shape repayment performance.

Retailers and digital providers seek a larger role in customers’ everyday finances. Shoprite’s proposed Investec partnership would connect retailer distribution with bank-held deposits, while Revolut’s conditional Israeli licence opens a path towards competing for primary accounts. Australia’s expansion of data sharing could make existing lending relationships easier to challenge.

Read more on the week’s key developments:

1. Sea’s Monee grows loan book 60% as credit provisions rise faster

Singapore-based Sea Limited reported on 10 November that its digital financial services business, Monee, increased third-quarter revenue 64% year on year to $1.6 billion, driven by consumer and SME lending. Loans outstanding increased 60% to $12.6 billion, including $11.2 billion on book. Monee added nearly six million first-time borrowers, bringing active credit users to nearly 44 million. Adjusted EBITDA rose 16% to $298.3 million, while credit-loss provisions surged 82% to $678.7 million. The 90-day non-performing loan ratio reached 1.3%, up from 1.1% a year earlier.

Monee’s rapid expansion is becoming more expensive. Marketing costs more than doubled to $334.6 million, while credit-loss provisions rose faster than the loan book, leaving EBITDA growth well behind revenue. The increase in delinquencies warrants scrutiny as newer loans mature. Expansion beyond Shopee increases the importance of controlling acquisition costs and credit losses.

2. Australia extends open finance to non-bank home, car and personal loans

Consumer data-sharing obligations under Australia’s Consumer Data Right began for the initial group of non-bank lenders on 9 November, covering home, car and personal loans. Customers of participating providers can authorise sharing with accredited services. Other large lenders must follow from 10 May 2027. Standardised product information, including interest rates and fees, has been available since July.

Access to non-bank loan data gives lenders and brokers a fuller picture of borrowers’ debts, supporting refinancing, affordability assessments and faster applications without relying entirely on uploaded statements. Exemptions affect six of the seven initial provider groups, sometimes covering associated entities rather than the main lender. Broader coverage from May 2027 could increase refinancing competition, but the immediate impact depends on which providers can share customer data.

3. Shoprite partners with Investec to expand everyday banking in South Africa

South African retailer Shoprite Group announced an agreement in principle with Investec on 9 November to expand its everyday banking offering through a transactional account and debit card. Investec would provide its banking licence, infrastructure, balance sheet and regulatory capabilities. Customer deposits would sit on Investec’s balance sheet. Shoprite would run the customer-facing offering through its stores, brands and digital channels. The arrangement is non-exclusive and requires regulatory approval.

Shoprite would retain the customer relationship while Investec provides the regulated banking capabilities. Investec would gain access to mass-market deposits and payment volumes beyond its private banking franchise, without building a retail network. Non-exclusivity also leaves Shoprite free to work with other banks. Bank Zero’s partnership with Mukuru provides another example of banking services distributed through a non-bank platform. For incumbent banks, the longer-term risk is becoming infrastructure providers while retailers could capture the primary banking relationship.

4. JazzCash and Mobilink expand lending and deposit franchise

Dubai-headquartered telecoms group VEON reported on 6 November that its Pakistan financial services business, comprising JazzCash, Mobilink Microfinance Bank and JazzSure, grew third-quarter revenue 68% year on year to PKR 43.4 billion ($156 million). Gross loans rose 52% to PKR 134.6 billion ($486 million). JazzCash issued more than 230,000 nano-loans a day, nano-lending grew 131% and deposits rose 62%. The banking-loan NPL ratio improved to 8.1% from 10.4%, and nano-loan recoveries rose to 93.2% from 91.5%.

The results show a telecoms group building lending and deposit relationships beyond its payments business. Credit quality improved across both portfolios, although the measures differ. Nano-loan recoveries are measured for cohorts reaching 236 days after disbursement, so the unrecovered balance is not necessarily a final loss. More than 80% of banking loans are collateralised, and Mobilink’s capital adequacy ratio is 16.8%.

5. US credit-card delinquency eases as pandemic-era lending risks recede

US credit-card balances rose $22 billion to $1.29 trillion in the third quarter, while the annualised flow into serious delinquency edged down to 6.87% from 7.05% a year earlier, the Federal Reserve Bank of New York reported on 10 November. Accompanying research found that delinquency remained above pre-pandemic levels across neighbourhood income groups, with a wider gap between lower- and higher-income areas. Median credit scores at card issuance fell from 699 in 2017–19 to 688 in 2020–22, as lenders extended more credit to riskier borrowers.

Cards issued during 2020–22 contributed substantially to rising delinquencies as pandemic support ended and borrowing costs increased, although their contribution is now waning. Cards issued since 2023 have generally gone to higher-score borrowers. Aggregate improvement may therefore partly reflect changing borrower mix, even while repayment difficulties remain elevated in lower-income neighbourhoods.

6. Public Bank grows car and home lending as pricing competition limits income growth

Malaysia’s Public Bank reported on 6 November that nine-month net interest and financing income rose just 1.2% to MYR 8.55 billion ($2.11 billion), citing competitive loan and deposit pricing. Hire purchase and residential property financing grew at annualised rates of 6.5% and 4.3%, with market shares of 33.3% and 20%, respectively. Total loans grew at an annualised 6.2%, outpacing deposit growth of 4.1%. Third-quarter net profit fell 3.8% to MYR 1.77 billion ($436.4 million), partly due to higher impairment allowances. The group’s gross impaired-loan ratio was 0.55%.

Competition for car and housing loans is constraining pricing, while slower deposit growth increases the importance of funding costs. Non-interest income rose 7% to MYR 2.71 billion ($668.1 million), supported by unit trusts and bancassurance. Its 35% cost-to-income ratio, against the industry’s 46.4%, provides an efficiency advantage, while low impaired loans limit credit pressure.

7. Affirm’s card volume more than doubles as Ratepay deal opens Germany

Affirm reported on 5 November that gross merchandise volume rose 34% to $14.4 billion in its fiscal first quarter. Affirm Card volume grew 117% to $3.3 billion, with active cardholders more than doubling to 6.0 million. Delinquencies of 30 days or more, excluding Peloton and Pay in X loans, rose 35 basis points from the previous quarter to 2.9%. On 9 November, Affirm agreed to buy German invoice-payments provider Ratepay from Nexi on undisclosed terms. The deal is expected to close in the first half of 2027.

Affirm Card’s growth is diluting merchant fee revenue relative to spending: merchant network revenue fell from 2.3% to 2.1% of gross merchandise volume. The acquisition would give Affirm an established position in Germany as the EU’s revised Consumer Credit Directive applies from 20 November and extends affordability checks to most BNPL products.

8. Revolut wins conditional licence to enter Israel’s banking market

The Bank of Israel granted UK-based Revolut a conditional banking licence and control permit on 10 November to establish Revolut Bank Israel. It is the third new-bank licence since December 2019 in a market dominated by five banking groups. Revolut must complete further regulatory, technology and operational requirements before launching banking services.

Revolut received an identification code for access to Israeli payment systems in August 2024, preceding its banking application. Its challenge is attracting primary accounts and stable deposits beyond individual payment services. However, market entry can be lengthy: Esh Bank received its initial licence in December 2022 and currently opens accounts by invitation only. This gives incumbent banks time to defend customer relationships through deposit pricing and improved digital services.

9. South Korea’s household lending rebounds across banks and non-banks

South Korea’s Financial Services Commission reported on 11 November that household loans rose KRW 6.4 trillion ($4.8 billion) in October, reversing September’s KRW 2.2 trillion ($1.6 billion) decline. Mortgages increased KRW 4 trillion ($3 billion), while other loans rose KRW 2.4 trillion ($1.8 billion), including KRW 1.2 trillion ($896.2 million) in unsecured credit.

September’s sharp contraction amplified October’s rebound, but lending growth also exceeded the KRW 4.9 trillion recorded a year earlier. Government-backed mortgages contributed to the increase, although rising balances alone do not establish a broad recovery in borrowing demand. More notable was the return to unsecured credit growth despite tighter lending restrictions. Sustained growth in unsecured borrowing would test the effectiveness of existing credit controls.

10. Crédit Agricole proposes Italian merger combining 6.5 million customers

Crédit Agricole proposed on 9 November to combine its Italian subsidiary with Banco BPM, creating Italy’s third-largest bank with 6.5 million customers and over 2,300 branches. Crédit Agricole would hold about 45% of the Milan-listed group.

The proposal would combine branch distribution with Crédit Agricole’s Italian life and non-life insurance businesses, extending integration beyond existing partnerships. Annual pre-tax synergies are estimated at EUR 800 million ($897.1 million). The projected 24% uplift to Banco BPM’s 2027 earnings per share assumes those synergies at their full annual level, although completion is envisaged only for H2 2027. Branch overlap could attract antitrust scrutiny. Shareholder approval must also secure a waiver allowing Crédit Agricole to avoid a mandatory takeover offer, alongside regulatory and Italian government clearances.