New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 3% in January 2026 compared with the same month in 2025. In the twelve months to January 2026, new business in this market was 6% higher than in 2024.

The credit card and personal loans sectors together reported new business 1% higher in January than in the same month in 2025, while the retail store and online credit sector reported a fall in new business of 5% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:

“The consumer finance market made an encouraging start to 2026, but the outlook has become more challenging. Rising tensions in the Middle East are pushing up global energy costs, and inflation is now expected to increase rather than ease, delaying any move towards lower interest rates and placing renewed pressure on household budgets.

“If these cost pressures persist, consumers are likely to become more cautious, leading to softer demand and greater sensitivity to affordability. As conditions tighten, FLA members will continue to support households navigate a more difficult economic environment through the provision of responsibly provided finance.”

Source: FLA