Consumer finance new business fell by 2% in July 2023

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business fell in July 2023 by 2% compared with the same month in 2022. In the seven months to July 2023, new business remained 3% lower than in the same period in 2022. 

The retail store and online credit sector reported a fall in new business in July of 3% compared with the same month in 2022, while the credit card and personal loan sectors together reported a decrease in new business of 1% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: 

“FLA consumer finance providers reported a modest fall in new business in July reflecting more cautious consumer sentiment given the higher interest rate environment. 

“FLA’s latest research suggests that the value of new consumer credit in the UK in 2023 is likely to be 6.7% higher than in 2022, with the credit card market expected to grow by 9.1% over that period. 

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.” 

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 2022, FLA members provided £151 billion of new finance to UK businesses and households. £116 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2022.
3. Consumer car finance reported in these figures refers to finance obtained through the point of sale.
4. For media enquiries, please contact the FLA press office on 020 7420 9656.