Finance & Leasing Association2 August 2021
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 28% in June 2021 compared with the same month in 2020. In the first half of 2021, new business was 18% higher than in the same period in 2020.
The retail store and online credit sector reported new business up by 22% in June compared with same month in 2020, and growth of 12% in the first half of 2021. The credit card and personal loan sectors together reported new business up by 39% in June compared with the same month in 2020, and growth of 4% in the first half of 2021.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The consumer finance market continued to report robust growth in June, but as expected growth rates are beginning to moderate. The H1 2021 results show that new business levels have recovered strongly as restrictions to deal with the pandemic have been gradually eased.
“Our latest research suggests that the industry has maintained its optimism about the opportunities for growth despite the risks to the economic recovery from further waves of Covid-19. The FLA’s Q3 2021 industry outlook survey shows that 88% of consumer finance providers expected new business growth over the next twelve months.”
Table 1: New consumer credit lending
|
|
Jun 2021 |
% change on prev. year |
3 months to Jun 2021 |
% change on prev. year |
12 months to Jun 2021 |
% change on prev. year |
| Total FLA consumer finance (£m) |
8,812 |
28 |
24,958 |
80 |
92,485 |
1 |
| Data extracts: |
|
|
|
|
|
|
| Retail store and online credit (£m) |
763 |
22 |
2,064 |
25 |
8,898 |
5 |
| Credit cards & personal loans (£m) |
4,017 |
39 |
11,597 |
53 |
41,962 |
-11 |
| Second charge mortgages (£m) |
91 |
236 |
260 |
217 |
833 |
-24 |
| Car finance (£m) |
3,572 |
18 |
10,018 |
158 |
36,869 |
18 |
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.
- The FLA Q3 2021 Industry Outlook Survey results may be found here.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
