Financial houses seek role in tackling social exclusion

28 Mar 02
Banks and building societies are keen to work with social landlords to tackle financial exclusion among tenants, delegates were told.

29 March 2002

Adrian Coles, director general of the Building Societies Association, said that there was no harm in launching products that tenants would find attractive, but that it was more important to educate people and to increase numeracy and literacy.

A survey carried out three years ago found that 84% of the 1.5 million people in the UK without a bank account or insurance policy live in social rented housing. Many take out loans from illegal money lenders rather than banks and building societies, which normally offer lower rates of interest.

'There is not just one numeracy and literacy programme that will help people overcome financial exclusion,' said Coles. 'You have to tailor yourself to the particular group. But if you put education in place, the products will find a more receptive audience.'

Earlier, Andrew Robinson, head of community development banking at NatWest, said new products and services, along with 'sexy promotion', were more likely to raise participation among people without bank accounts. 'The client group is not stupid. They know how to manage their finances down to the last penny,' he said.

PFmar2002

Did you enjoy this article?

AddToAny

Top