Consumer finance new business grew by 16% in December and by 15% in 2021

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 16% in December 2021 compared with the same month in 2020. In 2021 as a whole, new business grew by 15% compared with 2020, but remained 4% lower than in 2019.

The credit card and personal loan sectors together reported new business up by 23% in December compared with the same month in 2020, and 17% growth in 2021 overall. The retail store and online credit sector reported a fall in new business of 1% in December compared with the same month in 2020, but grew by 6% in 2021 overall.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “FLA’s consumer finance markets made a strong recovery during 2021, with new business only 4% below pre-pandemic levels by the end of the year.

“Economic and market conditions will remain challenging this year, with many households facing a significant squeeze on disposable incomes from higher inflation, interest rates and taxes.  FLA’s Q1 2022 industry outlook survey showed that almost two-thirds of consumer finance providers expect new business growth over the next twelve months, but more than a fifth expect some contraction in new business.”