FLA: New business up 21% in April 2022

During the first four months of 2022, new business was almost a third higher (30%) than the same period in 2021, according to the FLA’s new figures.

New business in the credit card and personal loan sectors were reported as up by 30% in April 2022, compared with the same month in 2021 – as experts warn of a cost-of-living crisis driving more people to use credit to cover essentials.

The retail store and online credit sector said new business growth was 12% over the same period.

Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The consumer finance market continued its recovery in April following the pandemic, with the value of new business growing across each of the main finance products. 

“The value of outstanding contracts at the end of April remained 2% lower than in February 2020.

“Our latest research suggests that new business growth in the consumer finance market will slow as the pressure on household incomes from higher inflation, interest rates, and taxes weighs on consumer spending.  

“UK new consumer credit is expected to grow by 29% in the first half of 2022 and by 12% in the second half of the year.”