Consumer finance growth remains strong

4 April 2014

Figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 14% in February 2014, compared with the same month last year. The second charge mortgage market reported new business up 57% by value and 32% by volume in February.

Point-of-sale finance also showed a 23% increase, and the strong performance continued in retail store and online credit with new business growth of 12%.

Commenting, Fiona Hoyle, Head of Consumer Finance at the FLA, said: “On 1 April, the Financial Conduct Authority began supervising an additional 50,000 consumer credit firms. The challenge now is to get them through the authorisation process within a sensible timescale  so that the supply of responsibly-provided credit can be maintained.”

Table 1: New consumer credit lending

 

Feb. 14

% change on prev. year

3 months to Feb. 2014

% change on prev. year

12 months to Feb.  2014

% change on prev. year

Total FLA consumer finance (£m)

4,979

+14

16,422

+15

67,413

+8

             
Data extracts:            
Retail store and online credit (£m)

439

+12

1,652

+12

5,981

+5

Credit cards & personal loans (£m)

2,798

+9

9,347

+9

36,108

0

Second mortgages (£m)

44

+57

125

+54

475

+41

Car finance (£m)

1,455

+27

4,580

+30

21,492

+25

Note to editors:

  1. 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 short-term credit lenders, and instalment credit providers. 2. In 2013, FLA members provided £88.3 billion of new finance to UK businesses and households. £65.9 billion of this was in the form of consumer credit representing almost a third of all unsecured lending in the UK.

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