Consumer finance new business grew by 11% in December 2024
New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew in December 2024 by 11% compared with the same month in 2023. In 2024 as a whole, new business in this market was 2% higher than in 2023.
The credit card and personal loans sectors together reported new business in December 13% higher than in the same month in 2023, while the retail store and online credit sector reported new business growth of 9% over the same period.
Commenting on the figures, Geraldine Kilkelly,director of research and chief economist at the FLA, said: “Consumer finance new business provided by FLA members grew in December 2024 at its fastest pace since August 2022, with growth across most of the major finance products. In 2024 overall, new business provided by this market reached £114.9bn, 2% higher than in 2023.
“The recent cut in Bank rate will help to ease the pressure on household incomes but consumer spending is expected to remain subdued. FLA’s latest industry outlook survey suggested that almost two-thirds of consumer finance respondents expected some increase in new business over the next year.
“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
| Dec 2024 | % change on prev. year | 3 months to Dec 2024 | % change on prev. year | 12 months to Dec 2024 | % change on prev. year | |
| Total FLA consumer finance (£m) | 9,357 | 11 | 28,449 | 3 | 114,873 | 2 |
| Data extracts: | ||||||
| Retail store and online credit (£m) | 935 | 9 | 2,674 | 0 | 8,427 | -4 |
| Credit cards & personal loans (£m) | 5,420 | 13 | 15,489 | 4 | 60,772 | 2 |
| Second charge mortgages (£m) | 130 | 35 | 458 | 34 | 1,726 | 25 |
| Car finance (£m) | 2,557 | 6 | 8,708 | 2 | 38,988 | 0 |