Finance & Leasing Association14 December 2022
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 7% in October 2022 compared with the same month in 2021. In the ten months to October 2022, new business was 17% higher than in the same period in 2021.
The credit card and personal loan sectors together reported new business up by 4% in October compared with the same month in 2021, while the retail store and online credit sector reported new business growth of 13% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“In October, the consumer finance market represented by FLA members reported single-digit new business growth for only the third time so far this year. Performances across sectors varied but most finance products reported growth in the value of new business compared with the same month a year earlier.
“In 2022 as a whole, we expect consumer finance new business provided by FLA members to reach £119 billion, 17% higher than in 2021 which largely reflects the recovery following the pandemic. The value of outstanding consumer finance contracts at the end of October was 1% higher than pre-pandemic.
“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
|
|
Oct 2022 |
% change on prev. year |
3 months to Oct 2022 |
% change on prev. year |
12 months to Oct 2022 |
% change on prev. year |
| Total FLA consumer finance (£m) |
9,455 |
7 |
29,276 |
8 |
115,477 |
18 |
| Data extracts: |
|
|
|
|
|
|
| Retail store and online credit (£m) |
931 |
13 |
2,463 |
8 |
9,777 |
7 |
| Credit cards & personal loans (£m) |
4,738 |
4 |
14,795 |
9 |
58,877 |
24 |
| Second charge mortgages (£m) |
143 |
31 |
441 |
44 |
1,542 |
48 |
| Car finance (£m) |
3,303 |
9 |
10,401 |
7 |
41,054 |
14 |
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 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.
- Consumer car 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.
