The Inclusive Economy Partnership is working to provide the financially under-served with access to affordable credit, with the tools and capabilities to interact with fair financial products and to improve financial capability in order to solve the issue of problem and persistent debt.

 

financial inclusion
1. FinTech solutions to tackle financial exclusion

Exciting advancements in fintech and landmark changes to open banking legislation have created an environment of financial innovation, which the Inclusive Economy Partnership is seeking to harness in order to tackle the issues caused by financial exclusion.

Open Banking for Good - led by our Champion, Nationwide Building Society - brings fintech organisations, charities and business expertise together to create and scale open banking solutions with the aim of improving financial capability. These solutions focus on income smoothing, improving the income and expenditure process and creating more personalised money management.

2. Availability of Affordable Credit

24 million people in the UK have £500 or less in savings, which increases their financial exposure. In addition, 4.5 million people currently access high-cost credit, whilst 9 million people live in problem debt situations. There is a clear lack of availability and provision of affordable credit, and appropriate insurance products for these people. 

We are seeking to improve the availability of affordable credit to the most financially vulnerable in society. Under the umbrella of Fair4All Finance, this project will develop a standard to define what a ‘good’ affordable credit provider is, work with Credit Unions to develop sufficient provision of affordable credit and build resilience to financial shocks.

 

financial inclusion
financial inclusion
3. Development of Debt Collection and Recovery Standards

When collections and recovery practises are poor; people in debt find it harder to repay what they owe. This impacts their mental and physical wellbeing and increases their vulnerability, which in turn contributes further to financial hardship.

Working in partnership with business, charities and local authorities, the IEP will create a cross-sector debt collection standard to set a consistent and responsible approach to collecting debt. This standard will establish a more customer-focused level of support for people in problem debt.

 

Scaling innovation

The IEP has supported the following social innovators to scale through partnerships:

How do I get involved?

Can you share lived experience or information about what your organisation is doing to tackle financial inclusion? We'd love to hear from you.