Consumer finance new business grew by 7% in October 2022

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 7% in October 2022 compared with the same month in 2021. In the ten months to October 2022, new business was 17% higher than in the same period in 2021.

The credit card and personal loan sectors together reported new business up by 4% in October compared with the same month in 2021, while the retail store and online credit sector reported new business growth of 13% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “In October, the consumer finance market represented by FLA members reported single-digit new business growth for only the third time so far this year. Performances across sectors varied but most finance products reported growth in the value of new business compared with the same month a year earlier.

“In 2022 as a whole, we expect consumer finance new business provided by FLA members to reach £119 billion, 17% higher than in 2021 which largely reflects the recovery following the pandemic.  The value of outstanding consumer finance contracts at the end of October was 1% higher than pre-pandemic.

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”

Table 1: New consumer credit lending