The Community Investment Coalition (CIC) has warmly welcomed the Financial Inclusion Commission’s report ‘Improving the financial health of the nation’. The Financial Inclusion Commission’s work has highlighted the vulnerability of private finances and the lack of resilience in the system. The Commission’s report sets out a vision for the UK where financial services that are accessible, easy to use and meet people’s needs over their lifetime.
Report recommendations include:
- Designating a senior minister as the government lead on financial inclusion, and financial capability, with the title of ‘Minister for Financial Health’;
- Establishing a Ministerial champion for financial inclusion in each interested Department and in all devolved administrations;
- Placing a statutory duty on the Financial Conduct Authority to promote financial inclusion as one of its core objectives;
- Government leading a collective effort with retail banks and others to promote wider data disclosure and to fill the low income credit gap;
- Promoting measures to make community finance institutions more sustainable, such as government lifting the APR cap on credit unions, lenders and investors developing a better understanding of business models and risk.
Commenting on the report, CIC Director Jennifer Tankard said:
“Financial exclusion is a pervasive issue within UK economy, which affects three million individuals in the UK. It is recognised that fair and affordable access to financial goods and services is a basic requirement for full engagement in modern society.
“An inability to access a transactional bank account, a scarcity of branches and a lack of financial awareness are some of the barriers that prevent people effectively managing their money and, subsequently, restricting their ability to participate fully in the economy. With a general election imminent, the Financial Inclusion Commission provides a significant and welcome voice to the debate about how the UK Government can promote financial inclusion for every adult, business and community in the United Kingdom.”
About the Community Investment Coalition
- The Community Investment Coalition is a partnership of national organisations, which aims to increase access to affordable finance for all communities. Membership includes the Community Development Foundation, the Centre of Responsible Credit (CfRC), the New Economics Foundation (nef), CCLA, the Community Development Finance Association (CDFA) and Local Trust.
CIC campaigns for:
- Increased transparency and public accountability of financial service providers to support consumer choice and allow effective intervention in under-served markets.
- Increasing diversity of providers and choice for consumers in the financial services sector, with more providers offering a wider range of fair and affordable products.
- More innovation in the financial services sector so that affordable financial products are delivered accessibly to all communities.
- Sustainable local economic growth with a greater share of locally generated income remaining within communities.
- Improvements in financial literacy.