Consumer finance new business grew by 16% in December

New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 16% in December 2021 compared with the same month in 2020. In 2021 as a whole, new business grew by 15% compared with 2020, but remained 4% lower than in 2019.

The credit card and personal loan sectors together reported new business up by 23% in December compared with the same month in 2020, and 17% growth in 2021 overall. The retail store and online credit sector reported a fall in new business of 1% in December compared with the same month in 2020, but grew by 6% in 2021 overall.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “FLA’s consumer finance markets made a strong recovery during 2021, with new business only 4% below pre-pandemic levels by the end of the year.”

“Economic and market conditions will remain challenging this year, with many households facing a significant squeeze on disposable incomes from higher inflation, interest rates and taxes.  FLA’s Q1 2022 industry outlook survey showed that almost two-thirds of consumer finance providers expect new business growth over the next twelve months, but more than a fifth expect some contraction in new business.”

New consumer credit lending

	Dec 2021	% change on prev. year	3 months to Dec 2021	% change on prev. year	12 months to Dec 2021	% change on prev. year
Total FLA consumer finance (£m)	8,712	16	27,231	19	100,504	15
Data extracts:
Retail store and online credit (£m)	1,013	-1	2,935	-1	9,146	6
Credit cards & personal loans (£m)	4,826	23	14,461	26	49,637	17
Second charge mortgages (£m)	99	53	323	52	1,110	47
Car finance (£m)	2,528	13	8,626	17	36,722	16