Like 2 million people around the world, I too have become hooked on the online word puzzle, Wordle. It has become part of my morning routine as I make breakfast; and as a part-American living in the U.K. I have not been thrown off by the US spelling of certain words.
The more I play, the more parallels I draw with the CDFI sector. I am beginning to wonder whether the game was inspired by the journey of trying to access finance?
1) You try over and over but you still can’t get it right: CDFI customers are often unable to access finance from the traditional banks and other fintech lenders.
2) After a missed attempt you don’t see a lot of options, but you get creative and keep trying. CDFI customers are incredibly resilient. They’ve been told no before – too little track record; poor credit score – but they still bounce back and try again.
3) The relief when you get it! 9 out of 10 of our customers have been declined by at least one other provider. CDFIs help customers solve the credit puzzle and give them access to finance to realise their ambitions.
4) A lot of people are in the same boat. Millions of people play Wordle and for the majority, it takes three or four tries to get it right. And sometimes it can take a little longer (especially if there are repeated letters!). Similarly, financial exclusion can affect any of us – half of U.K. adults could not cover their living expenses for 3 months if they lost their income; one in five has less than £100 in savings. Financial precarity is a reality and we need to start designing specifically for it in order to alleviate it.
That’s exactly what CDFIs do. And “CDFIs” happens to be a five-letter word.
Theodora Hadjimichael, Chief Executive, Responsible Finance