8 July 2025: Following a successful pilot, Responsible Finance member Fair Finance and Vanquis have launched a first of its kind decline referral partnership which will support up to 100,000 financially underserved people with benefit checks and affordable credit over the next two years – underpinned by a £3m lending facility from Vanquis.
The scheme will direct Vanquis customers who are not yet eligible for its products to a community development finance institution (CDFI), Fair Finance, where they can apply for an affordable loan and automatically be assessed for benefit entitlements.
The initiative follows a successful pilot programme that supported over 2,600 individuals, unlocking nearly £10 million in benefits and advancing £100k in loans, over the past 6 months. The new partnership is underpinned by a £3mn lending facility from Vanquis.
A widening credit gap
Currently one in three UK adults struggle to access credit from mainstream lenders*, with reports suggesting that millions have turned to illegal moneylenders.** This situation is at risk of worsening, with the FCA highlighting that 49% of people are potentially financially vulnerable.***
The Government has pledged to develop a National Strategy for Financial Inclusion, shaped by a Financial Inclusion Committee, with input from the financial sector. This follows calls from regulators and the government for a collaborative approach that prioritises customer well-being.
First of its kind partnership
This partnership is the first referral arrangement in the UK between a non-profit and a bank, that addresses these issues directly. It is creating an impactful and scalable solution to an issue affecting millions in the UK, helping them avoid financial inclusion and unnecessary borrowing.
It forms part of Vanquis’ broader ‘not yet’ proposition – an approach focused on supporting potential customers with tailored financial support rather than declining them outright.
“Our partnership with Fair Finance, alongside tools like Snoop, reflects our commitment to practical, inclusive support for financially underserved people,” says Ian McLaughlin, CEO of Vanquis. “Helping customers unlock the benefits they’re entitled to is a powerful way to ease financial stress, reduce the need to borrow, and build a more secure future. Through our ‘not yet’ proposition, we’re creating better ways for people to regain control and rebuild their financial lives.”
Faisel Rahman OBE, Founder and CEO of Fair Finance, said: “Partnering with Vanquis allows us to reach people often left behind by traditional lenders. Together, we’re not just providing loans, but are helping people unlock income through unclaimed benefits to build long-term financial stability. This referral process, backed by a new £3 million lending facility, shows how lenders can play a more proactive role in supporting financial inclusion. If adopted more widely, it could help lay the foundations for a fairer and more accessible financial system.”
Theodora Hadjimichael, CEO of Responsible Finance, said: “The government and regulators have called for more collaboration across financial services to prioritise customers’ wellbeing. This partnership is exactly that and is set to boost financial resilience for up 100,000 people. We need many more referral partnerships between community development finance institutions and other financial institutions in order to build a credit system that works for everyone.”
* PWC and Money & Totally Money, Overlooked and financially Underserved Report, 2022.
** Fair4AllFinance, Millions turning to unauthorised lenders as new report shines a light on illegal moneylending in Great Britain, June 2023.
*** FCA, Financial Lives Survey, May 2024
Case study
Forklift driver Elvis, 34, found Fair Finance thanks to an independent YouTube video advising people how to avoid getting ripped off when using credit. “You were number 4 of the companies they recommended.”
Elvis came to Britain from Ghana in 2024. He secured work quickly but is building up his finances and has no credit history. When he needed money to deal with an emergency, he was worried about some of the things he had heard from colleagues, who warned him of “dodgy” loan companies that “rip people off”. So Elvis looked into who he could trust. Fair Finance proved just the ticket:
“I applied and you came back to me to say you couldn’t lend me £1,000, but could do £500. I knew that would still help, and the money was in my account quickly. That was great because it was an emergency,” he says.
“It’s been a good experience and I can afford the repayments. And I check my credit score every month, I can see that it’s going up now.”
About Fair Finance:
▪ Fair Finance is a non-profit social business tackling financial exclusion since 2005. It is one of the first microfinance organisations in the UK.
▪ For 20 years it has pioneered the delivery of affordable credit products to some of the most excluded in the country, while also providing advice and support to help people avoid eviction, and backing local entrepreneurs to grow their businesses.