Consumer finance new business grew by 2% in January 2024

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew in January 2024 by 2% compared with the same month in 2023.  In the twelve months to January 2024, new business was 2% lower than in the same period in 2023. 

The credit card and personal loans sectors together reported new business up in January by 5% compared with the same month in 2023, while the retail store and online credit sector reported new business 9% lower over the same period.

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

“The consumer finance market made a positive start to 2024 primarily driven by growth in the credit cards and personal loans sectors.  

“In the near term, consumer spending growth is likely to remain subdued despite an improved outlook for real household disposable incomes.  The UK new consumer credit market is expected to grow by 2% in 2024 to reach almost £360 billion.  

“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 2023, FLA members provided £151 billion of new finance to UK businesses and households. £113 billion of this was in the form of consumer credit representing almost a third of total new consumer credit written in the UK in 2023.
3. Consumer car finance reported in these figures refers to finance obtained through the point of sale.

1. For media enquiries, please contact the FLA press office on 020 7420 9656.