FLA - Finance & Leasing Association

11/06/2019 | Press release | Distributed by Public on 11/06/2019 04:42

Consumer finance new business grows by 8% in September

6 November 2019

New figures released today by the Finance & Leasing Association (FLA) show consumer finance new business grew by 8% in September, compared with the same month last year. In Q3 2019 as a whole, new business grew by 4% compared with the same quarter in 2018.

In September, credit card and personal loan new business together grew by 8% compared with the same month in 2018, while retail store and online credit new business increased by 5%. Second charge mortgage new business was up 18% by value and 20% by volume over the same period.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist said:

'September saw consumer finance new business grow by its strongest rate since October 2018, with growth across each of the main finance products.

'Our latest research suggested that UK new consumer credit overall was expected to grow by 3.4% in 2019 as a whole, and by a similar rate in 2020.'

Table 1: New consumer credit lending

Sep 2019

% change on prev. year

3 months to Sep 2019

% change on prev. year

12 months to Sep2019

% change on prev. year

Total FLA consumer finance (£m)

9,863

+8

26,903

+4

103,659

+2

Data extracts:

Retail store and online credit (£m)

736

+5

2,049

+2

8,752

+3

Credit cards & personal loans (£m)

4,363

+8

13,435

+3

51,817

0

Second charge mortgages (£m)

105

+18

321

+15

1,207

+17

Car finance (£m)

4,284

+7

9,873

+5

37,717

+3

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 2018, FLA members provided £136 billion of new finance to UK businesses and households. £103 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2018.
  3. For media enquiries, please contact the FLA press office on 020 7420 9656.