Consumer finance new business grew by 9% in April 2024

6 June 2024

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew in April 2024 by 9% compared with the same month in 2023.  In the first four months of 2024, new business in this market increased by 2% compared with the same period in 2023. 

The credit card and personal loans sectors together reported new business 11% higher in April compared with the same month in 2023, while the retail store and online credit sector reported a fall in new business of 3% over the same period. 

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

“The strong performance in April can in part be attributed to a shorter working month in April 2023 due to the timing of Easter. There has also been a significant improvement in consumer confidence with better news on inflation and the prospect of lower interest rates leading to greater optimism about personal finances. 

“The General Election campaigns are in full swing but for many households the key to maintaining confidence will be a reduction in interest rates in the second half of 2024.  Our latest research suggested that the UK consumer credit market would see single-digit growth in the value of new business in 2024 of around 4% compared with 2023.  

“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

 

Apr 2024

% change on prev. year

3 months to Apr2024  

% change on prev. year

12 months to Apr2024

% change on prev. year

Total FLA consumer finance (£m)

9,591

9

28,456

2

113,801

0

Data extracts:

 

 

 

 

 

 

Retail store and online credit (£m)

660

-3

1,867

-9

8,575

-4

Credit cards & personal loans (£m)

5,182

11

14,700

4

60,018

1

Second charge mortgages (£m)

138

40

405

23

1,468

-3

Car finance (£m)

3,200

7

10,262

0

38,895

-3

 

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

 

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