Consumer finance grew by 11% in October

New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 11% in October 2021 compared with the same month in 2020. In the ten months to October 2021, new business was 13% higher than in the same period in 2020.

The credit card and personal loan sectors together reported new business up by 24% in October compared with the same month in 2020, and 13% growth in the ten months to October 2021. The retail store and online credit sector reported new business 3% lower in October than in the same month in 2020, but 8% growth in the ten months to October 2021.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “Consumer finance new business overall grew for an eighth consecutive month in October driven by the continued recovery in the credit cards and personal loans sectors, and the second charge mortgage market.”

“The pace of recovery is likely to slow in the coming months as further restrictions are considered to deal with new waves and variants of Covid-19 and household disposable incomes are squeezed by higher inflation, taxes and interest rates.”

New consumer credit lending