Consumer finance grew by 11% in December

New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew in December 2024 by 11% compared with the same month in 2023.  In 2024 as a whole, new business in this market was 2% higher than in 2023.

The credit card and personal loans sectors together reported new business in December 13% higher than in the same month in 2023, while the retail store and online credit sector reported new business growth of 9% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “Consumer finance new business provided by FLA members grew in December 2024 at its fastest pace since August 2022, with growth across most of the major finance products.  In 2024 overall, new business provided by this market reached £114.9 billion, 2% higher than in 2023.

“The recent cut in Bank rate will help to ease the pressure on household incomes but consumer spending is expected to remain subdued. FLA’s latest industry outlook survey suggested that almost two-thirds of consumer finance respondents expected some increase in new business over the next year.”

 New consumer credit lending

	Dec 2024	% change on prev. year	3 months to Dec2024	% change on prev. year	12 months to Dec 2024	% change on prev. year
Total FLA consumer finance (£m)	9,357	11	28,449	3	114,873	2
Data extracts:
Retail store and online credit (£m)	935	9	2,674	0	8,427	-4
Credit cards & personal loans (£m)	5,420	13	15,489	4	60,772	2
Second charge mortgages (£m)	130	35	458	34	1,726	25
Car finance (£m)	2,557	6	8,708	2	38,988	0