Finance & Leasing Association9 March 2023
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 1% in January 2023 compared with the same month in 2022. In the twelve months to January 2023, new business was 10% higher than in the same period in 2022.
The retail store and online credit sector reported new business up by 11% in January compared with the same month in 2022, while the credit card and personal loan sectors together reported new business growth of 3% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The consumer finance market reported modest growth in January, following two consecutive months of contraction in new business. The strong performance by the retail store and online credit sector reflected retail sales promotions after Christmas.
“In the first half of 2023, household expenditure is likely to remain relatively weak as pressures on household incomes from high inflation, and higher interest rates and taxes continue. FLA’s latest research suggests that the value of new consumer credit in the UK is likely to grow by around 1% in 2023 as a whole.
“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
|
|
Jan 2023 |
% change on prev. year |
3 months to Jan 2023 |
% change on prev. year |
12 months to Jan 2023 |
% change on prev. year |
| Total FLA consumer finance (£m) |
8,947 |
1 |
26,664 |
-3 |
114,643 |
10 |
| Data extracts: |
|
|
|
|
|
|
| Retail store and online credit (£m) |
741 |
11 |
2,920 |
5 |
9,915 |
8 |
| Credit cards & personal loans (£m) |
4,657 |
3 |
13,883 |
-4 |
58,343 |
14 |
| Second charge mortgages (£m) |
103 |
14 |
333 |
9 |
1,570 |
37 |
| Car finance (£m) |
3,133 |
-5 |
8,641 |
-5 |
40,579 |
5 |
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 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.
- Consumer car 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.
