EPA publishes new insight to explore the current state of financial exclusion in the UK and inspire action
New report challenges the Fintech industry to do more in helping the unbanked and underserved within the youngest and oldest age groups of adults, following the COVID-19 pandemic and subsequent UK lockdownsLondon, UK – 02nd December 2020: The Emerging Payments Association (EPA), which promotes collaboration and innovation across payments, has today published its new insight that explores some of the issues that young and elderly age-groups in the UK face when it comes to accessing financial services. The research, released on the day that England is released from its second lockdown, also highlights some of the inclusivity initiatives and solutions that are currently offered by Fintechs to address these issues.
According to the Financial Inclusion Commission, the UK has over a million individuals without a bank account. There is a much larger section of the population which is underserved and a disproportionate amount are 16-24 or over 65. The experience of the unbanked and the underserved has been further aggravated in 2020 due to the COVID-19 pandemic and its subsequent lockdowns. When the UK entered COVID-19, it had a low resilience in savings, insurance, affordable credit and financial capabilities, and since the pandemic started further inequalities and the potential of a real credit and debt crisis looms as we head into the Christmas period. The EPA’s Project Inclusion team set out to inspire more action to help these consumer groups at-risk.
The report, All aboard. The role of the Fintech industry in solving the problems of financial exclusion, was compiled from interviews with a range of stakeholders including banks and payments organisations, consulting organisations, Fintechs, independent industry bodies, social and community interest organisation and consumers. These included subject matter experts from Fintechs and charity organisations, who are playing their part by offering solutions to financially excluded demographics, to consumers at either end of the ‘age-spectrum’ of 16-24 through to those aged 65 and over, who often miss out on the benefits that financial services can bring.
The interviews explore a multitude of factors that contribute to financial inclusion amongst the young and the elderly, deep diving into:
- Digital skills
- Access to banking
- Personal circumstances
- Low financial awareness
- Lack of understanding of the needs of these consumer groups by the industry.