EUKN - European Urban Knowledge Network - Access to financial services by those on the margins of banking: final report

Access to financial services by those on the margins of banking: final report

Introduction

This report investigates how people who are living with financial exclusion access banking services, money advice and credit, in order to enhance the understanding of this group of people and inform policy.

Description

The study focuses on the "unbanked" (those without any form of transactional bank account) and the "underbanked" (those who have a bank account but do not use it regularly to manage their money).

The research looked at the experiences of these groups of people in relation to:

basic bank and Post Office card accounts,
accessing cash,
ATM usage and charges for accessing cash,
making payments,
sources of financial information,
credit and borrowing.

Background information

The research was commissioned by the Financial Inclusion Taskforce. The government set out its strategy ‘Promoting financial inclusion’ in 2004. This strategy sets out a range of measures - in three priority areas -

access to banking,
access to affordable credit,
access to free face to-face money advice.

At the same time the Government also established a framework for delivery - including a Financial Inclusion Fund of £120m over three years and a Financial Inclusion Taskforce, to oversee progress. The Financial Inclusion Taskforce was formally launched on 21st February 2005.

Methodology

The research involved a quantitative survey with 2007 people across Great Britain between November 2005 and January 2006. The survey respondents were recruited using random location sampling. In addition 30 qualitative interviews were held with people drawn from low income groups.

Conclusions

The project found that seven per cent of respondents were living in households that were either unbanked or underbanked.

The majority of these people were:

either pensioners,
households with low incomes,
renting from a social landlord,
not in work or retired,
in receipt of state benefits,
lacking any qualifications,
living in the most deprived areas.

The survey also found that respondents from marginally banked and low income households appeared to live and work further from a local bank branch or ATM.

The reasons for not having a bank account appeared to be:

lack of money,
current indebtedness
lack of appropriate identification.

Contact info

Financial Inclusion Taskforce
Phone: +44 20 7270 4558
Financial.inclusion.taskforce@hm-treasury.gov.uk

Publication date

Project finished

01/11/2006

Researcher

BMRB Social Research

Links

Visit the Financial Inclusion Taskforce website

Download the Äcces to financial inclusion taskforce" report (PDF, Eng, 2 MB)

Document type

research

Themes

Urban Policy > Social inclusion & integration > Quality of life

Keywords

Financial inclusion