Volumes of new business across the consumer finance market climbed by 9% in September compared to the same month last year, new figures from the Finance & Leasing Association (FLA) have shown.

Over the first nine months of 2024, new business in the market was 1% up on the same period in 2023.

Members of the FLA from across the consumer finance sector include banks, credit card providers, store card providers, second charge mortgage lenders, personal loan and instalment credit providers, as well as motor finance providers.

The credit card and personal loans sectors together reported new business 10% higher in September than in the same month last year, while the retail store and online credit sector reported new business growth of 1% over the same period.

Director of research and chief economist at the FLA, Geraldine Kilkelly, said: “The lower inflation and interest rate environment helped to boost demand for consumer finance in September.

“Growth in the consumer finance market represented by FLA members was the strongest since April of this year, with higher levels of new business reported for each of the main finance products. In Q3 2024 as a whole, total consumer finance new business grew by 4% compared with Q3 2023.”

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