Responsible Finance members are diverse, but share a commitment to fair, responsible and mission-led lending.
The Code of Practice brings this to life by setting out what that looks like in practice. It helps demonstrate the value of responsible finance, build trust with partners and support consistent, high-quality services for the people, businesses and social enterprises you work with.
Many members will already be meeting much of the Code through their existing work. The Code is intended to help you bring that together, reflect on where you are and identify where you may want to develop further. It is not about having everything in place from the start; we will develop our shared approach with members over time.
The Code is built around six hallmarks, which set out the core principles of responsible finance and provide a simple structure for the 17 standards. They are intended to provide a shared framework rather than a rigid or prescriptive approach, with members’ experience and feedback helping to shape how the Code develops.
The six hallmarks of responsible finance
The Code is built around six hallmarks, which set out the core principles of responsible finance and provide a clear structure for the 17 standards.
Fair, Responsible & Transparent Lending
1. Clear description of lending policy and cost of borrowing
2. Public commitment to the Code of Practice
3. Robust loan and risk management
Delivering Social & Environmental Impact
4. Activities support financial inclusion and community development
5. Annual reporting of social and environmental impact
6. Contribution to the sector’s net-zero ambition
Social Purpose & Governance
7. Clear social purpose and aligned governance
8. Profits used to further social purpose
9. Real Living Wage employer
Supporting Underserved People & Communities
10. Evidence of improving customer and community outcomes
11. Lending to high proportions of underserved people and places
Outstanding Customer Care
12. Putting customers first and connecting them to support
13. Fair, accessible and effective handling of complaints
14. Supporting customers in financial difficulty
More Than a Lender
15. Support beyond finance
16. Collaboration across communities and industries
17. Collaborating across the CDFI sector for better customer outcomes and greater impact
How the standards apply
The 17 standards build on the six hallmarks and describe what responsible finance looks like in practice. They provide a shared framework for reflection, learning and continuous improvement, rather than a tick-box exercise.
All 17 standards are core to the Code of Practice and apply across the membership. However, how they are applied and demonstrated will vary depending on an organisation’s size, capacity, lending model and customer base.
The aim is for the standards to be reflected in a way that is meaningful, practical and proportionate. Smaller members, for example, may start with simpler approaches and develop these over time.
Find out more
For more information about the Responsible Finance Code of Practice, please contact [email protected],uk or speak to our Membership Director, Matt Woodcock