Consumer finance new business grew by 2% in July 2021

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 2% in July 2021 compared with the same month in 2020. In the first seven months of 2021, new business was 15% higher than in the same period in 2020.

The retail store and online credit sector reported new business up by 2% in July compared with same month in 2020, and growth of 11% in the first seven months of 2021. The credit card and personal loan sectors together reported new business up by 24% in July compared with the same month in 2020, and growth of 7% in the first seven months of 2021.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:

'The slower rate of new business growth reported by the consumer finance market in July largely reflects lower retail sales volumes and private new car sales. The second charge mortgage market and credit card finance and personal loans sectors continued to report solid new business growth as they continue to recover from record low levels last year.

'Our latest research suggests consumer finance new business by value is expected to grow by 13% in 2021 as a whole, slightly lower than previous expectations. Pent-up demand and a gradual easing of supply constraints currently hindering some sectors are expected to support further growth of 16% in 2022.'

Table 1: New consumer credit lending

	Jul 2021	% change on prev. year	3 months to Jul 2021	% change on prev. year	12 months to Jul 2021	% change on prev. year
Total FLA consumer finance (£m)	8,309	2	25,535	35	92,660	2
Data extracts:
Retail store and online credit (£m)	695	2	2,126	15	8,910	5
Credit cards & personal loans (£m)	4,100	24	12,088	40	42,749	-7
Second charge mortgages (£m)	101	153	279	217	894	-11
Car finance (£m)	3,037	-18	9,963	35	36,230	14

Note to editors:

1. FLA members in the consumer finance sector include banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and instalment credit providers.
2. In 2020, FLA members provided £113 billion of new finance to UK businesses and households. £86 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2020.
3. Consumer motor finance reported in these figures refers to finance obtained through the point of sale.
4. For media enquiries, please contact the FLA press office on 020 7420 9656.

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