As of October 2024, monetary financial institutions (MFI) granted most of the lending to individuals in the United Kingdom (UK). Meanwhile, other non-bank lenders gave approximately 275 million British pounds worth of loans just in March 2024. During the past years, non-bank lenders have been increasing their market share. Non-MFI lenders also had a growing market share of the new consumer lending market in the UK.

In June 2025, most consumer loans in the United Kingdom (UK) were granted by monetary financial institutions (MFI). Nevertheless, other lenders gave over 12.7 billion British pounds worth of consumer credit. During the past years, non-bank lenders have been increasing their market share. Credit cards made up most of the new monthly consumer lending in the UK.

The effective interest rates of overdraft lending in the United Kingdom (UK) amounted to nearly 21 percent in March 2024. Meanwhile, outstanding fixed-rate secured loans had some of the lowest interest rates for household lending. Secured loans had, in general, lower interest rates than non-secured lending. In 2024, the average interest rates of personal loans in the UK remained relatively stable.

Mortgages made up most of the outstanding lending provided to households in the United Kingdom (UK) in May 2025. While loans excluding overdraft amounted to 68.6 billion British pounds that month, the value of mortgages reached nearly 1.5 trillion British pounds.

Consumer Credit in the United Kingdom increased to 1692 GBP Million in August from 1669 GBP Million in July of 2025. This dataset provides the latest reported value for - United Kingdom Consumer Credit - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

As of 2022, HSBC Holdings plc had in its portfolio more loans and advances to customers in Hong Kong than in the United Kingdom (UK). Hong Kong took over the UK in 2018, when lending in that territory amounted to nearly 291 billion U.S. dollars. In 2022, the value of loans granted by HSBC in the United States was higher than in mainland China. HSBC, founded in 1865 in the British colony of Hong Kong, had most of its customer loans in Asia and Europe.

Customer loans in the balance sheet of the Nationwide Building Group in the UK amounted to 213 billion British pounds in the financial year ended in April 2024. The value of outstanding loans by the Nationwide Building Society, a mutual financial institution from the UK, has been increasing during the past decades.

As of late October 2024, most of the outstanding consumer lending in the United Kingdom (UK) were overdrafts, as well as loans and advances other than credit cards. Consumer credit peaked in February 2020, but dropped sharply two months later before slowly starting to recover again. The category other, which includes overdrafts and other loans and advances made up most of the outstanding credit. Meanwhile, credit cards amounted to approximately a third of the outstanding consumer loans. Nevertheless, credit cards made up most of the new monthly consumer lending in the UK. A likely reason for this discrepancy is that credit card debt tends to be paid in a shorter term than other types of credit.

The interest rates of most types of personal loans in the United Kingdom (UK) have increased slightly in 2024. However, the interest rates applied to personal loans of 3,000 British pounds were slightly lower than in the previous year, amounting to 18.68 percent. Smaller personal loans had, in general, higher interest rates than bigger loans.

Consumer lending, excluding student loans, in the United Kingdom (UK) reached nearly 33.51 billion British pounds in March 2025. These figures have thus recovered from the stark decline suffered in April 2020. The value of new consumer credit granted also decreased during the economic crisis of 2007, although more gradually. The category consumer lending includes loans and advances to individuals through credit cards and personal loans. The majority of consumer credit is through credit card lending. Mortgage lending The value of outstanding mortgage lending in the UK is far higher than that of consumer credit. Additionally, the outstanding volume of consumer credit has fluctuated more in the past, while mortgages have had a more consistent growth. In the second quarter of 2024, the value of gross new mortgage lending in the UK amounted to over 60 billion British pounds. Credit card payments With billions of British pounds in gross consumer lending through credit cards, it’s unsurprising that the number of credit cards in circulation in 2022 was nearly as high as the number of people in the UK. The number of credit cards peaked in 2005, and it slightly decreased in the following months. However, there were still nearly 56 million credit cards in issue in the UK in 2023. The average amount spent per purchase on credit cards in the UK was roughly 59 British pounds in November 2024. This figure is much lower than the spending limit of most credit cards.

United Kingdom Gross Lending to Individuals: Consumer Credit (CC): Total data was reported at 35,279.000 GBP mn in Mar 2025. This records an increase from the previous number of 29,577.000 GBP mn for Feb 2025. United Kingdom Gross Lending to Individuals: Consumer Credit (CC): Total data is updated monthly, averaging 16,654.500 GBP mn from Apr 1993 (Median) to Mar 2025, with 384 observations. The data reached an all-time high of 35,279.000 GBP mn in Mar 2025 and a record low of 5,030.000 GBP mn in May 1993. United Kingdom Gross Lending to Individuals: Consumer Credit (CC): Total data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB039: Lending to Individuals: Gross: Consumer Credits. [COVID-19-IMPACT]

Over the five years through 2024-25, credit bureaux and rating agencies’ revenue is slated to fall at a compound annual rate of 5% to £2.3 billion. Geopolitical issues, particularly the forced stoppage of operations in Russia, have hurt the industry, mainly through lower deal rates and lost synergies with companies’ Russian branches. This also ate into profitability, cutting off some of the highest-ticket deals, which are the most profitable for rating agencies. Brexit restructuring has further influenced the market, with companies being forced to split their UK and EU operations. At the same time, weak economic conditions have held impeded revenue – low confidence and the high interest rate environment have meant there’s been less borrowing across the economy over the past few years, meaning less demand for the services credit rating agencies provide. In 2024-25, revenue is anticipated to climb by 3.2%. Increasingly favourable economic conditions, interest rate cuts and an upturn in deal-making are expected to stimulate borrowing. This will feed through to higher demand for credit rating services, as lenders require credit checks prior to approving loans. Over the five years through 2029-30, revenue is forecast to expand at a compound annual rate of 2.7% to £2.7 billion. Mounting demand for ESG rating services, which have been brought in by a number of major rating agencies, will be a key driver of this growth. Additionally, falling rates and a likely end to skyrocketing inflation will provide a more suitable environment for borrowing, ramping up demand for credit rating services.

Most of the loan portfolio of NatWest Group in 2023 was in the United Kingdom (UK). Its loan assets in that country have increased significantly, reaching over 361 billion British pounds that year. NatWest is a bank with headquarters in London. Most of the loans granted by NatWest were to customers rather than to other banks.

The monthly credit grantors survey was set up to provide data to the Bank of England in July 1978 following a benchmark survey in 1976.

Daily, weekly and monthly data showing seasonally adjusted and non-seasonally adjusted UK spending using debit and credit cards. These are official statistics in development. Source: CHAPS, Bank of England.

The UK consumer credit market experienced challenging conditions in 2019. Lending in 2020 is set to rise by 5%, but overall growth will remain flat at around 4-5% throughout the rest of the forecast period. This means gross advances are expected to total £372.4bn by 2023. The following factors will drive the market over the next few years: Read More

In 2024, over half of the loans and advances granted worldwide by Barclays PLC were in the United Kingdom. In comparison to the UK, the presence of the London-based bank in the rest of the world was much smaller. Most of the lending provided by Barclays was in the form of home loans.

United Kingdom M4 Lending: sa: HS: Individual: Consumer Credit data was reported at 134,688.000 GBP mn in Sep 2018. This records an increase from the previous number of 134,008.000 GBP mn for Aug 2018. United Kingdom M4 Lending: sa: HS: Individual: Consumer Credit data is updated monthly, averaging 116,539.500 GBP mn from Apr 1993 (Median) to Sep 2018, with 306 observations. The data reached an all-time high of 147,057.000 GBP mn in May 2008 and a record low of 42,062.000 GBP mn in Nov 1993. United Kingdom M4 Lending: sa: HS: Individual: Consumer Credit data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KA001: Money Stock.

The effective floating interest rate of outstanding consumer credit (not including overdraft) in the United Kingdom was over 6.54 percent in June 2025. The floating rate for secured loans and unsecured consumer lending was 5.77 percent.

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Digital Lending Market Size 2024-2028

The digital lending market size is forecast to increase by USD 34.56 billion at a CAGR of 26.63% between 2023 and 2028.

The market is experiencing significant growth, driven by the increasing adoption of advanced fintech technologies in the lending process. This shift towards digital solutions is evident in the rise of cloud-based digital lending servicing software offerings, which streamline operations and enhance the borrower experience. However, this market landscape is not without challenges. Compliance, cybersecurity and regulatory hurdles related to lending continue to pose significant obstacles. As regulatory bodies impose stricter rules to ensure transparency and security in digital transactions, lenders must invest in robust compliance frameworks to mitigate risks and maintain regulatory compliance.
Navigating these challenges while capitalizing on the opportunities presented by digital transformation requires a strategic approach. Companies must prioritize investments in technology and compliance to stay competitive and meet evolving borrower demands. By doing so, they can effectively navigate the market's complexities and position themselves for long-term success.

What will be the Size of the Digital Lending Market during the forecast period?

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The market continues to evolve, shaped by the intersection of technology, financial services, and global migration. Banks and money transfer operators are leveraging digital transfer platforms and electronic wallets to cater to the needs of migratory workers, international residents, and businesses. Creditworthiness assessment through data analytics and machine learning algorithms is revolutionizing personal loan applications, while regulatory requirements ensure financial security. Technology plays a pivotal role, with smartphones and mobile devices enabling mobile banking, mobile payments, and online loan applications. Digitalization is transforming wire transfer services, leading to reduced money transfer costs and increased customer satisfaction.
However, this digital shift brings challenges, including cyberattacks and data breaches, necessitating robust cybersecurity measures. Regulators are implementing regulations to mitigate risks, such as money laundering and terrorism funding, while ensuring the seamless operation of digital remittance businesses. The digitalization of cross border payments is accelerating, with blockchain technology and artificial intelligence being explored for faster and more secure transactions. The services segment, including consulting and implementation, is crucial for financial organizations to navigate this complex digital landscape. Digital lending is not just about loans; it's about enhancing the customer experience and ensuring financial inclusion for all.
The ongoing digitalization of financial services is a continuous process, with new trends and applications emerging constantly.

How is this Digital Lending Industry segmented?

The digital lending industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Component

  Solution
  Service


Deployment

  On-premises
  Cloud


End-User

  Banks
  Credit Unions
  NBFCs
  Fintech


Type

  Business Digital Lending
  Consumer Digital Lending


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  Middle East and Africa

    UAE


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Component Insights

The solution segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth, driven by advancements in technology and the increasing demand for faster and more convenient financial services. Banks and financial institutions are embracing digitalization to offer digital transfer platforms and mobile banking, enabling real-time loan disbursement and processing. International remittances are also being revolutionized through digital remittance services, reducing costs and increasing accessibility for migratory workers and international residents. Creditworthiness assessment through data analytics is a crucial aspect of digital lending, ensuring financial security for both borrowers and lenders. Money transfer operators and digital wallets facilitate seamless money transfers, while regulatory requirements ensure compliance and cybersecurity.

The use of artificial intelligence and machine learning in digital lending enhances customer experience and streamlines loan applications. Mobile devices and internet speed are essential infrastructure components for digital lending, en