Consumer finance new business grew by 11% in October 2021

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 11% in October 2021 compared with the same month in 2020. In the ten months to October 2021, new business was 13% higher than in the same period in 2020.

The credit card and personal loan sectors together reported new business up by 24% in October compared with the same month in 2020, and 13% growth in the ten months to October 2021. The retail store and online credit sector reported new business 3% lower in October than in the same month in 2020, but 8% growth in the ten months to October 2021. 

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

“Consumer finance new business overall grew for an eighth consecutive month in October driven by the continued recovery in the credit cards and personal loans sectors, and the second charge mortgage market.

“The pace of recovery is likely to slow in the coming months as further restrictions are considered to deal with new waves and variants of Covid-19 and household disposable incomes are squeezed by higher inflation, taxes and interest rates.”

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 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.
3. Consumer motor 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.