Finance & Leasing Association5 July 2021
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 116% in May 2021 compared with the same month in 2020. In the first five months of 2021, new business was 15% higher than in the same period in 2020.
The retail store and online credit sector reported new business up by 23% in May compared with same month in 2020, and growth of 11% in the first five months of 2021. The credit card and personal loan sectors together reported new business up by 63% in May compared with the same month in 2020, but remained 1% lower in the first five months of 2021 than in the same period in 2020.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The recovery in the consumer finance market continued in May as consumers have become more optimistic of a strong economic recovery. The significant growth rates reported in April and May reflect the impact on new business levels of restrictions to deal with Covid-19 during the first lockdown and we expect these to moderate in the coming months.
“Risks to the recovery remain from ongoing restrictions that may be needed to deal with the pandemic, the impact on confidence and unemployment once Government support schemes end, and increasing inflationary pressures. Nevertheless, we currently expect the industry to return to more normal new business levels during the second half of 2021.”
Table 1: New consumer credit lending
|
|
May 2021 |
% change on prev. year |
3 months to May 2021 |
% change on prev. year |
12 months to May 2021 |
% change on prev. year |
| Total FLA consumer finance (£m) |
8,382 |
116 |
25,279 |
63 |
90,516 |
-3 |
| Data extracts: |
|
|
|
|
|
|
| Retail store and online credit (£m) |
669 |
23 |
2,006 |
21 |
8,763 |
3 |
| Credit cards & personal loans (£m) |
3,972 |
63 |
11,238 |
34 |
40,833 |
-16 |
| Second charge mortgages (£m) |
84 |
309 |
253 |
74 |
748 |
-33 |
| Car finance (£m) |
3,325 |
385 |
10,795 |
134 |
36,292 |
16 |
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.
