New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business in March was at a similar level to that reported in March 2017, and grew 6% in Q1 2018 as a whole.

Credit card and personal loan new business together grew in March by 7%, compared with the same month in the previous year, while retail store and online credit new business increased by 4%.  The point of sale finance sector reported a fall in new business in March of 6% compared with the same month in 2017.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “The latest consumer finance new business figures were in line with recent trends in the wider economy, with household spending likely to have been adversely affected by poor weather conditions.  FLA consumer finance providers’ penetration of the UK new consumer credit market held steady in the twelve months to March 2018 at 35.6%.”

Table 1: New consumer credit lending

Mar 2018

% change on prev. year

3 months to Mar 2018

% change on prev. year

12 months to Mar 2018

% change on prev. year

Total FLA consumer finance (£m)

10,381

0

25,786

+6

97,820

+6

Data extracts:

Retail store and online credit (£m)

719

+4

2,022

+8

9,136

+9

Credit cards & personal loans (£m)

4,357

+7

12,664

+10

49,010

+7

Second charge mortgages (£m)

86

-10

244

0

1,023

+15

Car finance (£m)

4,849

-5

9,894

+3

34,522

+4