Lending via smartphones drives record growth in Japan consumer debt

Convenient ways to apply draw in younger borrowers

20230614N online loans

Apps have become the main entryway to apply for consumer finance in Japan. (Photo by Haruki Kitagawa)

YUKI NAKAMURA, Nikkei staff writer

TOKYO -- The rise of online lending services that are easily accessible via smartphones have helped drive record growth in Japan's consumer debt.

Outstanding unsecured consumer loans excluding mortgages increased about 6% on the year in March, according to the Japan Financial Services Association (JFSA). This marks the sharpest jump since tracking began in fiscal 2008.

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