Finance & Leasing Association7 June 2021
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 147% in April 2021 compared with the same month in 2020. In the first four months of 2021, new business was 1% higher than in the same period in 2020.
The retail store and online credit sector reported new business up by 31% in April compared with same month in 2020, and growth of 8% in the first four months of 2021. The credit card and personal loan sectors together reported new business up by 61% in April compared with the same month in 2020, but a fall of 12% in the first four months of 2021.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The strong pick-up in consumer finance new business was expected with the further easing of lockdown restrictions in April and given the adverse impact of the first lockdown on new business levels during the second quarter of last year. The latest figures show that the recovery in April was broad-based, with new business provided through personal loans and credit cards growing, year-on-year, for the first time since the pandemic began.
“Pent-up demand and an improvement in consumer confidence are expected to contribute to a strong recovery during the second half of 2021, with our latest research suggesting that consumer finance new business will grow by 14% in 2021 as a whole, and by a further 16% in 2022.”
Table 1: New consumer credit lending
|
|
Apr 2021 |
% change on prev. year |
3 months to Apr 2021 |
% change on prev. year |
12 months to Apr 2021 |
% change on prev. year |
| Total FLA consumer finance (£m) |
7,700 |
147 |
22,516 |
17 |
85,976 |
-12 |
| Data extracts: |
|
|
|
|
|
|
| Retail store and online credit (£m) |
632 |
31 |
1,916 |
10 |
8,636 |
0 |
| Credit cards & personal loans (£m) |
3,609 |
61 |
10,134 |
1 |
39,294 |
-22 |
| Second charge mortgages (£m) |
81 |
154 |
236 |
2 |
684 |
-43 |
| Car finance (£m) |
3,061 |
1557 |
9,338 |
45 |
33,615 |
-1 |
Note to editors:
- FLA members in the consumer finance sector include banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and instalment credit providers.
- In 2020, FLA members provided £113 billion of new finance to UK businesses and households. £86 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2020.
- Consumer motor finance reported in these figures refers to finance obtained through the point of sale.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
