Writing in today’s (25 May 2021) Financial Times, business columnist Helen Thomas stresses the need for the UK to give more attention and investment to expanding alternatives to high-cost credit that can provide financial products in a sustainable and responsible way:
“Evidence suggests that affordable credit provision, such as through community development financial institutions (CDFIs), can help reduce the poverty premium and improve financial resiliency….Not-for-profit CDFIs tend to serve people in more vulnerable circumstances, even compared to other community lenders such as credit unions. They cover their costs and provide a return to their investors.”
Her article references the closure of Provident Financial’s home credit division and describes a “market failure, when rising financial vulnerability means alternative finance is most needed.” Thomas also describes how the US Government is investing $12bn into its CDFI sector as part of pandemic reflief
What next?
- Personal-lending Community Development Finance Institutions helped 31,000 people save £11 million in interest recently. Read our latest “Building a Better Future” report
- Media / journalists: Responsible Finance, our members and clients have featured in TV, radio, national and regional newspapers, magazines, online and in podcasts.
- We can offer interviews, comment and case studies about access to finance / affordable credit / financial inclusion / debt, relating to businesses, social enterprises and people. Please contact [email protected] // 07904 272 200 to request interviews and case studies.