Consumer finance new business grew by 7% in June 2022

4 August 2022

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 7% in June 2022 compared with the same month in 2021. In the first half of 2022, new business was 24% higher than in the same period in 2021.

The credit card and personal loan sectors together reported new business up by 19% in June compared with the same month in 2021, while the retail store and online credit sector reported new business in June at a similar level to the same month in 2021.

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

“The consumer finance market continued to report new business growth in June, but the rate of growth eased as the post-pandemic boost to activity waned and pressures on household incomes from higher inflation, interest rates and taxes weighed on consumer confidence and spending.

“We expect growth in new business to slow in the coming months. Our Q3 2022 industry outlook survey suggests half of consumer finance respondents expect new business growth over the next year, down from two-thirds in the Q2 2022 survey.

“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”

 Table 1: New consumer credit lending

 

Jun 2022

% change on prev. year

3 months to Jun 2022

% change on prev. year

12 months to Jun 2022

% change on prev. year

Total FLA consumer finance (£m)

9,768

7

29,856

16

112,396

18

Data extracts:

 

 

 

 

 

 

Retail store and online credit (£m)

786

0

2,327

9

9,545

5

Credit cards & personal loans (£m)

4,993

19

15,349

27

57,010

30

Second charge mortgages (£m)

130

29

390

44

1,360

61

Car finance (£m)

3,486

-6

10,697

4

40,319

8

 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. FLA Q3 Industry Outlook Survey results may be found here.
  5. For media enquiries, please contact the FLA press office on 020 7420 9656.

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