Why is financial inclusion important? Financial inclusion is about ensuring that everyone has access to appropriate financial services to Manage their

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    28-Dec-2015

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  • Why is financial inclusion important?Financial inclusion is about ensuring that everyone has access to appropriate financial services toManage their money on a day-to-day basis, effectively, securely and confidentlyPlan for the future and cope with financial pressure - protecting against short-term variations in income and expenditure, taking advantage of longer-term opportunitiesDeal effectively with financial distress, should unexpected events lead to serious difficultyHM Treasurys Financial Inclusion Strategy: a summary

  • DTI managing 47.5 million fund for free, face-to-face money advice (400 advisers in place; 150 more to come - 18,000 customers reached)Legal Services Commission using 6 million to pilot methods of money advice outreach (8,000 advised)DWP administering 36 million Growth Fund for third sector lenders, over 15,000 affordable loansNow lets talk money campaign launched in January 2007 with 5.4 million fundingFinancial Inclusion Taskforce has a budget of 3 million for research and enhancing knowledge base

    Achievements to date

  • Continuing to reduce the number of unbanked people by promoting basic bank accountsEnsuring that newly banked people are using their bank accounts effectivelyContinuing to focus on the issue of accessibility of banking servicesUnderstanding the impact of developments in the banking market on the Governments objectives for effective money managementChallenges for effective day-to-day money management

  • Increasing the coverage and capacity of third sector lenders so that excluded people nationwide have access to this source of affordable creditMaking saving work for low-income or financially excluded consumers, through products that meet their saving needs, and through targeted saving incentivesInvestigating the role of insurance as a product for financially excluded customersIncreasing demand for financial services through targeted support, increased financial capability, and realising the potential of bank accounts as a route into wider financial inclusionKey challenges for planning for the future and coping with pressures

  • Continuing to make progress with the supply of face-to-face adviceEstablishing the potential of new, cost-effective, mechanisms for delivery of adviceReplicating the success of DTIs pilots to date in the nationwide rollout of projects to tackle illegal lendingPromoting the role of banks and other financial services providers in supporting people out of financial distressAddressing the impact of low financial capability on peoples capacity to deal with distressChallenges for dealing with financial distress effectively

  • For the next spending period (2008-11) Government will:Establish a new Financial Inclusion Fund for new and ongoing initiatives to promote financial inclusion, maintaining intensity of action, with the exact amount of the fund to be determined after the CSREstablish a ministerial working group to determine detailed priorities for financial inclusion policy, and to publish a detailed action plan after the CSRExtend the life-span of the independent Financial Inclusion Taskforce to evaluate progress and advise the GovernmentKey announcements

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