Consumer finance new business fell by 7% in August 2023

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business fell in August 2023 by 7% compared with the same month in 2022. In the first eight months of 2023, new business remained 3% lower than in the same period in 2022. 

The retail store and online credit sector reported a fall in new business in August of 2% compared with the same month in 2022, while the credit card and personal loan sectors together reported new business 7% lower over the same period. 

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

“The August data shows lower levels of new business across the main finance products reflecting in part the higher interest rate environment. Consumers also remain cautious about committing to major purchases despite some improvement in confidence as real earnings start to grow again. 

“FLA consumer finance providers remain positive about future growth prospects with three-quarters of respondents to the Q3 2023 Industry Outlook Survey expecting some increase in new business over the next twelve months. 

“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 £151 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.