Finance & Leasing Association7 May 2021
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew in March 2021 by 7% compared with the same month in 2020. In Q1 2021, new business was 17% lower than in Q1 2020.
The retail store and online credit sector reported growth in new business of 11% in March compared with same month in 2020, and an increase of 2% in Q1 2021. The credit card and personal loan sectors together reported a fall in new business of 2% in March compared with the same month in 2020, and a contraction of 25% in Q1 2021 as a whole.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The consumer finance sectors represented by FLA members showed improvement across the board in March, with several reporting new business growth. A year on since the introduction of the first restrictions to deal with the pandemic, the market and wider economy continue to be impacted by ongoing restrictions. However, the latest set of figures show that the industry has adapted to meet the challenges posed by the crisis.
“FLA’s most recent research suggests that consumer finance providers are increasingly optimistic about the outlook for the rest of 2021. While mindful of the possibility of higher unemployment and a dip in confidence once the Government support schemes come to an end, 84% of respondents to our latest industry outlook survey expect new business growth over the next twelve months.”
Table 1: New consumer credit lending
|
|
Mar 2021 |
% change on prev. year |
3 months to Mar 2021 |
% change on prev. year |
12 months to Mar 2021 |
% change on prev. year |
| Total FLA consumer finance (£m) |
9,159 |
7 |
20,491 |
-17 |
81,390 |
-22 |
| Data extracts: |
|
|
|
|
|
|
| Retail store and online credit (£m) |
705 |
11 |
1,890 |
2 |
8,487 |
-4 |
| Credit cards & personal loans (£m) |
3,658 |
-2 |
9,313 |
-25 |
37,933 |
-28 |
| Second charge mortgages (£m) |
88 |
-5 |
211 |
-30 |
635 |
-50 |
| Car finance (£m) |
4,371 |
17 |
8,265 |
-10 |
30,739 |
-17 |
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.
