9 April 2021
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business fell in February 2021 by 26% compared with the same month in 2020.
The retail store and online credit sector reported a fall in new business of 6% in February compared with same month in 2020. The credit card and personal loan sectors together reported a fall in new business of 30% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The lockdown restrictions over the winter months contributed to a fall in consumer finance new business overall of more than a quarter, with the credit card and personal loans sectors some of the hardest hit.
“As the economy begins to re-open and consumer confidence improves, we expect to see a strong rebound in many of the consumer finance sectors. Annual new consumer credit overall in the UK is expected to return to its pre-pandemic level in 2022.”
Table 1: New consumer credit lending
|
Feb 2021 |
% change on prev. year |
3 months to Feb 2021 |
% change on prev. year |
12 months to Feb 2021 |
% change on prev. year |
Total FLA consumer finance (£m) |
5,654 |
-26 |
18,605 |
-26 |
80,760 |
-24 |
Data extracts: |
|
|
|
|
|
|
Retail store and online credit (£m) |
579 |
-6 |
2,187 |
-4 |
8,416 |
-6 |
Credit cards & personal loans (£m) |
2,867 |
-30 |
9,399 |
-31 |
37,997 |
-28 |
Second charge mortgages (£m) |
67 |
-37 |
185 |
-39 |
640 |
-50 |
Car finance (£m) |
1,902 |
-24 |
6,123 |
-23 |
30,097 |
-21 |
Note to editors:
- 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.
- In 2020, FLA members provided £113 billion of new finance to UK businesses and households. £86 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2020.
- Consumer motor finance reported in these figures refers to finance obtained through the point of sale.
- For media enquiries, please contact the FLA press office on 020 7420 9656.