Finance & Leasing Association10 November 2022
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 4% in September 2022 compared with the same month in 2021. In the first nine months of 2022, new business was 19% higher than in the same period in 2021.
The credit card and personal loan sectors together reported new business up by 7% in September compared with the same month in 2021, while the retail store and online credit sector reported new business growth of 4% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“In September, the consumer finance market reported its third highest level of monthly new business so far this year, but the slowest rate of new business growth since September 2021. Growth in the value of new business reported by the credit card and personal loans sectors and consumer used car finance sector eased to single digits for the first time this year.
“Consumer confidence about the outlook for their personal financial situations has weakened as the impact of higher inflation and interest rates have squeezed real household incomes. The FLA’s Q4 2022 Industry Outlook Survey showed that two thirds of consumer finance providers expected some decrease in new business over the next year, with only 8% anticipating an increase.
“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
|
|
Sep 2022 |
% change on prev. year |
3 months to Sep 2022 |
% change on prev. year |
12 months to Sep 2022 |
% change on prev. year |
| Total FLA consumer finance (£m) |
10,177 |
4 |
29,413 |
10 |
114,850 |
19 |
| Data extracts: |
|
|
|
|
|
|
| Retail store and online credit (£m) |
787 |
4 |
2,289 |
6 |
9,669 |
5 |
| Credit cards & personal loans (£m) |
4,803 |
7 |
15,011 |
13 |
58,684 |
26 |
| Second charge mortgages (£m) |
145 |
42 |
444 |
49 |
1,508 |
51 |
| Car finance (£m) |
4,065 |
0 |
10,452 |
6 |
40,781 |
13 |
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.
- FLA policy priorities for 2022 and beyond may be found here.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
