New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew in October 2024 by 2% compared with the same month in 2023. In the ten months to October 2024, new business in this market was 1% higher than in the same period in 2023.
The credit card and personal loans sectors together reported new business in October 3% higher than in the same month in 2023, while the retail store and online credit sector reported new business growth holding steady over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “Our latest market data shows modest growth in consumer finance new business overall in October reflecting a subdued picture across most finance products apart from second charge mortgages.
“The outlook for consumer spending has weakened with the prospect of slower wage growth and higher taxes weighing on the recovery in real household disposable incomes. The FLA’s Q4 2024 Industry Outlook Survey showed that 63% of consumer finance providers expected some increase in new business over the next year, compared with 71% in the Q3 2024 Survey, while a further 13% expected new business levels to remain stable.”
New consumer credit lending
| Oct 2024 | % change on prev. year | 3 months to Oct 2024 | % change on prev. year | 12 months to Oct 2024 | % change on prev. year | |
| Total FLA consumer finance (£m) | 9,636 | 2 | 29,522 | 3 | 114,041 | 1 |
| Data extracts: | ||||||
| Retail store and online credit (£m) | 803 | 0 | 2,113 | -2 | 8,417 | -5 |
| Credit cards & personal loans (£m) | 5,110 | 3 | 15,272 | 4 | 60,269 | 2 |
| Second charge mortgages (£m) | 169 | 39 | 469 | 34 | 1,656 | 19 |
| Car finance (£m) | 3,135 | -1 | 10,308 | 3 | 38,751 | -1 |
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