UK Car Lending

New business in consumer credit increased by 1% in September 2021


November 5, 2021

New figures released today by the Finance & Leasing Association (FLA) show new business in consumer credit increased 1% in September 2021 compared to the same month in 2020. In the nine months to September 2021, new business was 13% higher than the same period in 2020.

The credit card and personal loan industries combined recorded new business up 25% in September compared to the same month in 2020, and growth of 12% in the nine months to September 2021. The industry Online retail and credit stores reported new business up 1% in September compared to the same month in 2020, and growing 9% in the nine months to September 2021.

Commenting on the numbers, Geraldine Kilkelly, research director and chief economist at the FLA, said:

“Some consumer credit sectors continued to show strong growth in September as they recover from the pandemic, but persistent supply chain problems have negatively affected the auto finance market and slowed growth. overall.

“Squeeze in household income due to higher inflation (mainly due to rising energy prices) and higher taxes is expected to weigh on consumer spending over the next year. It is not not surprisingly the Bank of England has refrained from raising interest rates for the time being. given that it expects higher inflation rates to be temporary and does not want to derail the recovery of the UK economy.

“Our latest research suggests that the industry has maintained its optimism about growth opportunities despite the risks of a recovery from supply chain disruption, higher inflation and new waves of Covid-19. L The FLA’s Fourth Quarter 2021 Industry Outlook Survey shows that 88% of consumer credit providers expected new business growth over the next twelve months. ”

Table 1: New consumer loans

Sep 2021

% change from previous year

3 months until September 2021

% change from previous year

12 months until September 2021

% change from previous year

Total FLA consumer credit (£ m)

9,513

1

26,020

5

93,800

5

Data extracts:

Retail store and online credit (£ m)

745

1

2 125

4

8,980

6

Credit Cards & Personal Loans (£ M)

4.324

25

12 767

26

44 568

2

Second Mortgages (£ M)

102

78

298

112

1000

12

Car finance (£ m)

3 976

-17

9,660

-13

35,415

9

Note to editors:

  1. FLA members in the consumer credit industry include banks, credit card providers, store card providers, second mortgage lenders, auto finance providers, personal loan providers and installment loans.

  2. In 2020, FLA members provided £ 113 billion in new funding to UK businesses and households. £ 86 billion of that was in the form of consumer credit accounting for over a third of total new consumer credit taken out in the UK in 2020.

  3. Consumer auto financing reported in these figures refers to financing obtained through the point of sale.

  4. The results of the FLA Q4 2021 Industry Outlook Survey are available here.

  5. For media inquiries, please contact the FLA Press Office on 020 7420 9656.

Disclaimer

FLA – Finance and Leasing Association published this content on November 05, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 05 November 2021 09:22:04 AM UTC.


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