Volumes of retail store and online credit surpassed GBP 2 billion in Q1 – biggest ever opening quarter to a year and record highs were registered in April and May 2022, setting Q2 on course for highest ever non-Q4 volume of new business, sustaining early sector momentum, the research reveals.
Freedom Finance, which provides embedded financial services to retail brands like Argos, ASDA and Very, said the strong figures demonstrate the high demand for products that offer flexibility and choice at all points throughout the customer journey.
The strong growth in the retail credit market is mirrored across the wider consumer finance market which expanded by 20% in May 2022 compared with the same month in 2021, reaching GBP 10.4 billion.
Monthly updates from consumer finance trade body, the Finance & Leasing Association, show that new business volumes reached GBP 2,120 million in the opening quarter of the year. It marks the highest ever level of borrowing for a Q1, and a double-digit increase of 12% compared to the same period in 2021.
The data cited by Freedom Finance is reportedly evidence that the rise in popularity of embedded finance is creating an urgent need for retailers, and other sectors, to start providing and widening the range of financial services they offer customers. As the experts compiling the data state, retailers will also be expected to start offering a greater variety of financial products to their customers, such as insurance, and embedding these services into their offering will be vital to their success in the future.
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