Publications

Social Credit Score
April 2023

Fair Banking Act Policy Paper March 2023
March 2023

Responsible Finance Impact Report 2022
May 2022

Our 2022 Impact Report gives a comprehensive insight into CDFIs’ work and the unique effects of fair, affordable finance from our members in 2021. The businesses, social enterprises and jobs we created and grew. The millions of pounds we helped households save in interest. The inequalities we fought.

It covers our purpose-driven members’ social, environmental and economic impacts, and maps how this work contributes to the UN Sustainable Development Goals (UN SDGs), today, all over the UK.

People, social entrepreneurs and business leaders tell their stories of the difference CDFIs make in their lives, and we urge banks, regulators, tech firms, housing associations, local authorities and other stakeholders to take specific actions so more stories can be heard in the future.

Building a better future. Personal lending report 2021.
May 2021

As Provident crumbles ethical lenders build better future for 31,000 customers.

Setting up for success. Enterprise Lending Report 2021.
May 2021

Cross-party acclaim for community development finance as report reveals thousands of businesses supported.

Responsible Finance RGF Impact Report
August 2020

The RF Fund was established in 2012 with two key objectives: to capitalise community development finance institutions (CDFIs) so they could lever further investment and scale up their economic and social impact; and to grow and support private-sector jobs and economic prosperity in places dependent on the public sector following the 2008 financial crisis. This Impact Report demonstrates it has achieved both objectives and exceeded the Government’s ambitious targets for businesses and jobs supported, while also unlocking millions of pounds of further private capital.

European funding and the responsible finance sector
March 2020

The EU’s European Regional Development Fund has been critical to the effective regeneration of regions across the UK. Its coherence and longevity have been key to its success. EU funding and instruments have been instrumental for CDFIs in enabling them to grow their SME lending and increase their offering of advice and support services to entrepreneurs.

Responsible Finance - The Industry in 2019
December 2019

Our flagship publication on the responsible finance industry reveals that in 2019 the responsible finance sector lent a total of £200 million to 40,000 customers. This included £78 million lent to over 4,200 businesses, £93 million lent to almost 400 social enterprises, £24 million lent in 35,000 loans to individuals, saving low income households over £7.5 million in interest payments, and £3.3 million lent to over 200 homeowners.

Responsible Finance's 2019 Manifesto
May 2019

The responsible finance industry works to promote prosperity and address inequality by empowering people to take control of their financial futures. We are calling on all political parties to support the growth of responsible finance providers by endorsing the commitments in our manifesto.

Responsible Finance - The Industry in 2018
December 2018

Our flagship publication on the responsible finance industry reveals that the responsible finance sector grew by £19 million (8%) compared with the previous year. In 2017-18 responsible finance providers lent a total of £254 million to 52,121 customers, supported 14,430 jobs and created 4,490 new businesses.

Affordable Lending Case Studies Report, 2018
June 2018

The vision of affordable lenders is that everyone should have access to affordable and appropriate credit, delivered in a fair, respectful and responsible way. Affordable lenders are typically social purpose lenders, such as responsible finance providers and credit unions.

Reliance on high cost credit continues to grow and the consumer detriment caused by unsustainable debt is now well documented. Affordable lenders such as responsible finance providers and credit unions are long-standing lenders in this market, providing an ethical alternative to high cost credit, that is both lower cost and provides wrap-around services that supports consumers’ financial capability. Whilst they are effective interventions, these affordable lenders are small scale and look different from one another as they are locally focused. Therefore when looking at the problem at a national scale it can be challenging to draw common themes from the affordable credit sector.

As policymakers, regulators and practitioners search for a scalable solution for the provision of affordable credit, this report provides a spotlight on five organisations and their pathways to scale. The five organisations highlighted are very different in terms of their histories, size and lifecycle stage. However the commonalities in their journeys point to the keys to unlock scale for the affordable credit sector.

Responsible Finance 2017: Figures from Wales
April 2018

1 page infographic highlighting the work of our members who lend in Wales in 2017.

The Future of CDFI Business Lending
March 2018

This report is the result of a two year research and engagement exercise on funding for business lending for responsible finance providers (also called Community Development Financial Institutions or CDFIs), facilitated by The Centre for Research into Ethnic Minority Entrepreneurship (CREME) at the University of Birmingham.

The work was undertaken by two honorary members of CREME, Professor Richard Roberts and Dr Steve Walker, both with long careers in the UK SME finance industry.  Dr Steve Walker is Chief Executive of responsible finance provider ART Business Loans, but undertook this work in a personal capacity, with a view to its relevance to the responsible finance sector.

Community Investment Tax Relief (CITR) and the Responsible Finance Sector
March 2018

The first research on Community Investment Tax Relief (CITR) published since the scheme's launch in 2002. Completed by Community Investment Services Ltd the work was commissioned by the Power to Change and a number of responsible finance providers.

Scaling Up Affordable Lending: Inclusive Credit Scoring
February 2018

Responsible Finance and Centre for Business in Society (CBiS), Coventry University have been funded by Oak Foundation to undertake a research programme to advance the supply of sustainable and affordable finance products to those excluded from mainstream credit and lending markets. The programme’s particular focus is to investigate how to overcome barriers to affordable lenders meeting consumer demand at a national scale and in a sustainable manner.

A known barrier to financial inclusion is the credit scoring approaches utilised by both mainstream and affordable lenders. Current approaches mean that there is an information gap and lenders do not always have the information they need to make a lending decision. Evidence in this report demonstrates the limitations of traditional credit scoring models in their ability to understand and capture the financial reality of consumers today to support full, fair and appropriate access to consumer credit markets. Increasing concerns with whether the current credit scoring methodology is fit-for-purpose for all segments of the consumer market is driving the development of new approaches, including what has been termed ‘inclusive credit scoring’.

Consumers, Credit and Scaling Affordable Lending: A Literature and Evidence Review
January 2018

Responsible Finance and Centre for Business in Society (CBiS), Coventry University have been funded by Oak Foundation to undertake a research programme to advance the supply of sustainable and affordable finance products to those excluded from mainstream credit and lending markets. The programme’s particular focus is to investigate how to overcome barriers to affordable lenders meeting consumer demand at a national scale and in a sustainable manner.

This Review draws on a range of academic, think tank, policy, advocacy and financial industry reports to provide a broader historical and literature context to the current market assessment activity of the Financial Conduct Authority (FCA). The Review is focused on the position and implications for affordable consumer lending and forms part of a larger programme of work including: Evaluation of the Affordable Lending Portal; Case Studies of other affordable lending initiatives; and an investigation in to the emergence of ‘inclusive credit scoring’ approaches.

Community Finance Partnerships: Working together to build community finance provision in London
January 2018

City Bridge Trust funded Responsible Finance to work with two responsible finance providers in London to consider how building local partnerships could help to tackle financial exclusion.

The pilot was led by Fair Finance and London Small Business Centre. NEF Consulting was commissioned by Responsible Finance to undertake a process and outcome evaluation of the learning activities of the pilot.  This learning review focused on the sustainability, replicability, impact of the partnership model.

Responsible Finance: The Industry in 2017
December 2017

Our flagship publication on the responsible finance industry reveals that responsible finance providers supported 34% more customers compared to the previous year. In 2016-17 responsible finance providers built the financial resilience of 55,000 consumers, supported 12,700 jobs and created 4,200 new businesses.

Consumers, Credit and Scaling Affordable Lending: A Literature and Evidence Review
May 2019

Responsible Finance (RF) and Centre for Business in Society (CBiS), Coventry University have been funded by Oak Foundation to undertake a research programme to advance the supply of sustainable and affordable finance products to those excluded from mainstream credit and lending markets. The programme’s particular focus is to investigate how to overcome barriers to affordable lenders meeting consumer demand at a national scale and in a sustainable manner.

This Review draws on a range of academic, think tank, policy, advocacy and financial industry reports to provide a broader historical and literature context to the current market assessment activity of the Financial Conduct Authority (FCA). The Review is focused on the position and implications for affordable consumer lending and forms part of a larger programme of work including: Evaluation of the Affordable Lending Portal; Case Studies of other affordable lending initiatives; and an investigation in to the emergence of ‘inclusive credit scoring’ approaches.

Microfinance and Start-Ups in the EU: UK Country Profile
November 2017

We produced this research report for the European Microfinance Network (EMN) which maps the start-up ecosystem of the UK and the relationship between microfinance and the non-tech start-up ecosystem in the UK. It includes:

• An overview of government-led support for start-ups in the UK, both financial and non-financial
• An  analysis of how UK microfinance institutions (MFIs) assist start-ups, including financial and non-financial support, and what changes MFIs believe are needed to better serve start-ups going forward
• Policy recommendations that would enable more effective delivery of MFI services to more start-ups in the UK

Creating Local Finance Partnerships
August 2017

This toolkit sets out the steps involved and the factors to consider when setting up a local finance partnership.

Tackling Financial Exclusion Through Local Finance Partnerships - Summary
May 2017

The executive summary of our research into local finance partnerships and how they can be replicated to tackle financial exclusion in the UK.

Tackling Financial Exclusion Through Local Finance Partnerships
May 2017

This report examines what makes a successful local finance partnership, and how these can be replicated to tackle financial exclusion across the UK. The report draws on experience from the UK and USA.

Responsible Finance: The Industry in 2016
April 2018

Our flagship publication on the responsible finance industry in 2016.

10 Years of Responsible Finance report
February 2018

The responsible finance market has experienced a rapid rise over the last ten years, with £1.6bn of loans supporting over 50,000 businesses and social enterprises. Our new report also reveals that over the last 10 years the responsible finance has injected £300 million into SMEs, and helped 200,000 people avoid predatory payday lenders. Without this lifeline, over 100,000 jobs would not exist, and hundreds of thousands of people would have been trapped with huge repayments, totalling £20 million, to high cost lenders.

Social Value: A reporting framework for community finance
June 2015

This brand new tool enables our members to comprehensively, consistently and clearly report on the values of their social impacts and outcomes. By mapping the value of responsible finance to all our stakeholders, we aim to build a strong compelling case for future investment and support.