Consumer finance growth strengthens

Figures released today by the Finance & Leasing Association (FLA) show a 14% increase in consumer finance new business compared with June last year, and a 13% increase in the first half of 2014.

Credit cards and personal loans were up by 10% in June, while the half-year figure showed an 8% increase. Point-of-sale finance was up 20% on June last year and grew by a similar rate in the first half of 2014. Retail store and online credit showed a 10% increase in June and 11% over the first of the half the year.

The second charge mortgage market reported new business up 21% by value and 9% by volume compared with June 2013 – the first growth in new contracts since March.

Commenting on the figures, Geraldine Kilkelly, Head of Statistics and Chief Economist at the FLA, said:

“Growth strengthened across the consumer finance market in June following a relatively quiet couple of months.  Consumer confidence was no doubt boosted by the good weather and the start of the summer sales.”                                                          

Table 1: New consumer credit lending

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 instalment credit providers.
2. In 2013 FLA members provided £89.0 billion of new finance to UK businesses and households. £66.6 billion of this was in the form of consumer credit representing almost a third of all unsecured lending in the UK.