Consumer Finance Sees Modest Growth of 3% in February: FLA Report

Fresh statistics from the Finance & Leasing Association (FLA) have revealed a moderate uptick in consumer finance new business, growing by 3% in February 2024 compared to the same month in 2023. This growth trend extends to the first two months of the year, with new business volumes also registering a 3% increase compared to the corresponding period in 2023.

Delving into specific sectors, the credit card and personal loans sectors collectively reported a notable uptick in new business in February, with a commendable 5% increase compared to the same month last year. However, the retail store and online credit sector experienced a slight downturn, reporting new business that was 8% lower over the same period.

Commenting on these figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, expressed optimism regarding the trajectory of consumer finance in 2024. Kilkelly highlighted that the credit card and personal loans sectors are expected to continue supporting consumer spending throughout the year. According to the FLA’s latest research projections, the value of new consumer credit in the UK is anticipated to grow by 4% in 2024, with the credit card market forecasted to experience a parallel 4% growth over the same period.

The modest yet steady growth in consumer finance reflects evolving consumer behaviors and economic conditions. As consumers navigate fluctuating financial landscapes, the availability of credit card and personal loan options continues to play a crucial role in facilitating spending and meeting various financial needs. Looking ahead, continued monitoring of market trends and proactive measures to support responsible borrowing will be essential in sustaining this growth trajectory and fostering a resilient consumer finance landscape.

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