Consumer finance new business grows by 33%

New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 33% in November 2021 compared with the same month in 2020. In the eleven months to November 2021, new business was 14% higher than in the same period in 2020.

The credit card and personal loan sectors together reported new business up by 34% in November compared with the same month in 2020, and 15% growth in the eleven months to November 2021. The retail store and online credit sector reported new business up by 2% in November compared with the same month in 2020, and 7% growth in the eleven months to November 2021.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “In the run-up to Christmas the consumer finance market reported growth across the board, in part reflecting low new business levels a year earlier as the UK entered another lockdown to deal with rising Covid-19 cases. Consumer demand also remained robust with the retail store and online credit sector reporting its strongest November on record.”

“Consumer finance new business provided by FLA members in 2021 as a whole is likely to be around 7% lower than its pre-pandemic peak and the rate of recovery is expected to slow in the near term as household disposable incomes are squeezed by higher inflation, taxes and interest rates.”

New consumer credit lending

	Nov 2021	% change on prev. year	3 months to Nov 2021	% change on prev. year	12 months to Nov 2021	% change on prev. year
Total FLA consumer finance (£m)	9,535	33	27,614	13	96,908	11
Data extracts:
Retail store and online credit (£m)	1,083	2	2,631	0	8,973	5
Credit cards & personal loans (£m)	4,893	34	13,588	28	46,664	11
Second charge mortgages (£m)	114	48	326	59	1,076	36
Car finance (£m)	3,126	47	10,062	2	36,318	14