Consumer finance new business grew by 16% in December and by 15% in 2021

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 16% in December 2021 compared with the same month in 2020. In 2021 as a whole, new business grew by 15% compared with 2020, but remained 4% lower than in 2019.

The credit card and personal loan sectors together reported new business up by 23% in December compared with the same month in 2020, and 17% growth in 2021 overall. The retail store and online credit sector reported a fall in new business of 1% in December compared with the same month in 2020, but grew by 6% in 2021 overall. 

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

“FLA’s consumer finance markets made a strong recovery during 2021, with new business only 4% below pre-pandemic levels by the end of the year. 

“Economic and market conditions will remain challenging this year, with many households facing a significant squeeze on disposable incomes from higher inflation, interest rates and taxes.  FLA’s Q1 2022 industry outlook survey showed that almost two-thirds of consumer finance providers expect new business growth over the next twelve months, but more than a fifth expect some contraction in new business.”

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 2021, FLA members provided £132 billion of new finance to UK businesses and households. £101 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2021.
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.