New business conducted across the consumer finance space grew by 11% in October compared with the same month in 2020, figures from the Finance & Leasing Association (FLA) have revealed.

In the 10 months to October 2021, the FLA also confirmed that new business was 13% higher than in the same period in 2020.

The credit card and personal loan sectors together reported new business was up by 24% in October compared with the same month last year, as well as 13% growth in the 10 months to October 2021.

The retail store and online credit sector reported a new business figure 3% lower in October than in the same month in 2020, but 8% growth for the 10 months to October 2021.

Commenting on the figures, FLA director of research and chief economist, Geraldine Kilkelly, said: “Consumer finance new business overall grew for an eighth consecutive month in October driven by the continued recovery in the credit cards and personal loans sectors, and the second charge mortgage market.

“The pace of recovery is likely to slow in the coming months as further restrictions are considered to deal with new waves and variants of COVID-19 and household disposable incomes are squeezed by higher inflation, taxes and interest rates.”

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