Consumer finance new business falls by 2% in May

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business fell in May by 2%, compared with the same month last year.

The retail store and online credit sector reported new business up in May by 2% compared with the same month in 2018, while credit card and personal loan new business together fell by 5%. Second charge mortgage new business grew by 23% over the same period.

Geraldine Kilkelly, Head of Research and Chief Economist, said:

“The consumer finance market reported a modest fall in new business of 1% in the first five months of 2019 compared with the same period in 2018.

 “We continue to expect low single-digit new business growth in 2019 as a whole, with consumer confidence about their own personal finances remaining relatively upbeat.”

 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 2018, FLA members provided £136 billion of new finance to UK businesses and households. £103 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2018.
3. For media enquiries, please contact the FLA press office on 020 7420 9656.