Consumer finance new business fell by 2% in May 2024

9 July 2024

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business fell in May 2024 by 2% compared with the same month in 2023.  In the five months to May 2024, new business in this market grew by 1% compared with the same period in 2023.  

The credit card and personal loans sectors together reported new business 2% lower in May compared with the same month in 2023, while the retail store and online credit sector reported a fall in new business of 7% over the same period. 

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

“The consumer finance market has reported modest growth in new business in 2024 so far despite the subdued performance in May. Consumer confidence overall continues to strengthen although this has yet to translate into a significant pick-up in confidence about making big-ticket purchases. 

“Our latest research suggested that total UK new consumer credit by value would grow in 2024 by 4% compared with 2023, supported by better news on real earnings and the prospect of lower interest rates.  

“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

 

May 2024

% change on prev. year

3 months to May2024  

% change on prev. year

12 months to May2024

% change on prev. year

Total FLA consumer finance (£m)

9,783

-2

29,865

0

113,555

0

Data extracts:

 

 

 

 

 

 

Retail store and online credit (£m)

674

-7

1,963

-8

8,525

-4

Credit cards & personal loans (£m)

5,297

-2

15,402

1

59,884

1

Second charge mortgages (£m)

142

18

417

22

1,490

-1

Car finance (£m)

3,245

-4

10,819

-1

38,775

-2

 

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 2023, FLA members provided £151 billion of new finance to UK businesses and households. £113 billion of this was in the form of consumer credit representing almost a third of total new consumer credit written in the UK in 2023.
  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.

 

Become a member

What are the benefits of becoming an FLA Member?