Consumer finance new business fell by 2% in February 2023

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business fell by 2% in February 2023 compared with the same month in 2022. In the first two months of 2023, new business was 1% lower than in the same period in 2022.

The retail store and online credit sector reported new business up by 6% in February compared with the same month in 2022, while the credit card and personal loan sectors together reported a fall in new business of 2% over the same period.

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

“The performance across finance products has varied in recent months, but the consumer finance market overall reported new business so far this year in line with the same period in 2022.

“While the economic outlook has improved, challenges remain for households and businesses as they deal with the impact of higher prices, taxes, and interest rates. We expect new UK consumer credit to be at a similar level this year to 2022.

“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 £148 billion of new finance to UK businesses and households. £115 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.