Consumer finance new business grew by 4% in September 2022
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 4% in September 2022 compared with the same month in 2021. In the first nine months of 2022, new business was 19% higher than in the same period in 2021.
The credit card and personal loan sectors together reported new business up by 7% in September compared with the same month in 2021, while the retail store and online credit sector reported new business growth of 4% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “In September, the consumer finance market reported its third highest level of monthly new business so far this year, but the slowest rate of new business growth since September 2021. Growth in the value of new business reported by the credit card and personal loans sectors and consumer used car finance sector eased to single digits for the first time this year.
“Consumer confidence about the outlook for their personal financial situations has weakened as the impact of higher inflation and interest rates have squeezed real household incomes. The FLA’s Q4 2022 Industry Outlook Survey showed that two thirds of consumer finance providers expected some decrease in new business over the next year, with only 8% anticipating an increase.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”