Consumer finance up 6% in 2017

9 February 2018

New figures released today by the Finance & Leasing Association (FLA) show growth of 6% in consumer finance new business in 2017. New business in December 2017 increased by 1% compared with the same month in 2016.

Credit card and personal loan new business together grew by 6% in 2017, while retail store and online credit new business increased by 9%. Second charge mortgage new business increased 14% by value and 10% by volume over the same period.

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

“Growth in retail store and online credit new business in the final quarter of 2017 was consistent with the seasonal pick-up in retail sales.

“The overall performance of the consumer finance market in 2017 was in line with expectations. We expect the market to continue to report modest single-digit growth in 2018 as a whole.”

Table 1: New consumer credit lending

Dec 2017

% change on prev. year

3 months to Dec 2017

% change on prev. year

12 months to Dec 2017

% change on prev. year

Total FLA consumer finance (£m)

7,605

+1

24,177

+6

96,299

+6

Data extracts:

Retail store and online credit (£m)

1,032

+13

2,935

+11

8,992

+9

Credit cards & personal loans (£m)

4,188

+1

12,556

+5

47,911

+6

Second charge mortgages (£m)

76

+3

245

+9

1,024

+14

Car finance (£m)

2,074

-2

7,559

+5

34,220

+6

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 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2017.
  3. For media enquiries, please contact the FLA press office on 020 7420 9656.

Original Article

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