Consumer finance new business fell by 5% in May 2023

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business fell in May 2023 by 5% compared with the same month in 2022. In the five months to May 2023, new business was 4% lower than in in the same period in 2022.

The retail store and online credit sector reported new business up in May by 1% compared with the same month in 2022, while the credit card and personal loan sectors together reported a fall in new business of 4% over the same period.

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

“May saw a continuation of recent trends in the consumer finance market with lower levels of new business across most finance products compared with the same month in 2022. Despite this, consumer finance new business provided by FLA members in May was the second highest total reported in 2023 so far.  

“The industry remains cautiously optimistic about the prospects for future growth, with 69% of consumer finance respondents to the FLA’s Q2 2023 Industry Outlook Survey anticipating some increase in new business over the next year. 

“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 £150 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.