Members of the Finance & Leasing Association (FLA), which operates across the asset finance, consumer finance and motor finance markets, provided £112.97bn of new business in 2020.
This was down 20 per cent year-on-year.
£37bn of this was provided by non-bank members, including Zopa and RateSetter, and £16bn went to small- and medium-sized enterprises (SMEs).
Total FLA new business reached £10.04m in December alone – 20 per cent less than December 2019.
Consumer finance new business fell in December 2020 by 18 per cent compared with the same month in 2019, and dropped by 18 per cent in 2020 as a whole.
Meanwhile, second charge new business fell by 34 per cent year-on-year to reach £62m in December.
“Our latest figures show the great support that FLA members gave to their customers and the economy in 2020, including to SMEs,” said Stephen Haddrill, director general at the FLA.
“Member companies will build on this during 2021, contributing to a full recovery of the UK economy.
“To ensure that FLA members achieve this they need a balanced approach to forbearance from the FCA this year with a focus on tailored support; independent finance companies need to be supported; and clarity and stability on policies for net zero are required, including recognition of support for technology risk.”
Read more: Driving forward