Financial Inclusion for Scotland launched to provide better access to fair and affordable financial services

Financial Inclusion for Scotland was launched today with the aim of enabling better financial inclusion in Scotland by supporting those who find it difficult to access fair or affordable financial services, such as free banking, affordable credit and money management services.

Managed by Social Investment Scotland (SIS), Financial Inclusion for Scotland is formed of ten founding members from across the commercial and not-for-profit sectors with a shared commitment to find new ways to expand financial inclusion in Scotland. Founding members include Scottish Financial Enterprise, Fintech Scotland, the Money and Pensions Service and Scotcash.

Financial Inclusion for Scotland has been established to pick up and progress the agenda from the Carnegie Working Group on Affordable Credit, which drew to a conclusion in 2021. The group is chaired by Stephen Pearson, a veteran of Scotland’s financial services industry with many years’ experience in promoting the financial inclusion agenda. Formerly of RBS Group and Virgin Money, Stephen was also a Trustee of the Virgin Money Foundation and a founding member of the Carnegie Trust Working Group.

Having retired from banking in 2019, Stephen helped Fintech Snoop (which uses open banking technology to provide money management tools) to build partnerships with financial wellbeing agencies. Stephen currently sits on the Advisory Board of salary deduction lender, Salary Finance, and has recently been appointed Chair of Castle Community Bank, the Edinburgh based credit union.

The launch of Financial Inclusion for Scotland comes at a time when many households across Scotland are struggling to deal with the dual impacts of Covid and the ongoing cost of living crisis. According to research carried out by the Money and Pensions Service (MaPS), in 2021, the Covid-19 pandemic has widened pre-existing gaps for low-income households when it comes to everyday borrowing and keeping up with bills. There is also emerging evidence to suggest that more people are using unlicensed money lenders or loan sharks than pre COVID-19.^[1]

Financial Inclusion for Scotland will be holding its first conference on 9^th November with the Deputy First Minister John Swinney MSP confirmed as keynote speaker.

Stephen Pearson, Chair of Financial Inclusion for Scotland said: “Enabling better financial inclusion should play a key role in an inclusive Scotland. The cost-of-living crisis has brought into sharp relief the huge struggles that many people in Scotland face managing their household budgets.  By working with Scottish Government, some of the brilliant third sector agencies, the Fintech community and Financial Services groups, we hope to find new ways to provide those who need it most with access to affordable credit, stigma free debt advice and smart phone money management tools. We also hope to stimulate fresh investment into this sector through new partnerships and more coherent policies, while developing practical and innovative solutions that can have a real impact on the ground. Our work has just begun but I’m convinced we can make a significant difference as a collective.”

Founding members of Financial Inclusion for Scotland include Social Investment Scotland, Scottish Financial Enterprise, Fintech Scotland, the Money and Pensions Service, Scotcash, StepChange, Salary Finance, Fair4All Finance, Money Advice Scotland and The Poverty Alliance.

1. The Adult Financial Wellbeing Survey was carried out by the Money and Pensions Service between July and September 2021 via interviews with a representative sample of UK adults, including 1,063 adults in Scotland. They also commissioned a Rapid Literature and Evidence Review’ of the latest evidence on the financially vulnerable, with a specific focus on those using credit to make ends meet.