A new organisation, named Financial Inclusion for Scotland, has been launched to help enable better financial inclusion in the country.

Leading policy makers and professionals in the private, charity and not-for-profit sectors will collaborate on the new organisation to tackle financial exclusion.

It will support 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.

The 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 concluded in 2021.

The group is chaired by Stephen Pearson, a veteran of Scotland’s financial services industry with many years’ experiences in promoting the financial inclusion agenda.

Formerly of RBS Group and Virgin Money, Pearson was also a Trustee of the Virgin Money Foundation and a founding member of the Carnegie Trust Working Group.

He commented: “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.”

The launch of Financial Inclusion for Scotland comes at a time when many households across the country are struggling to deal with the dual impacts of Covid-19 and the ongoing cost of living crisis.

According to research carried out by the Money and Pensions Service (MaPS), in 2021, the 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.

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

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Alastair Davis, chief executive of SIS added: “SIS has been supporting the expansion of affordable credit provision for more than 20 years, so we are delighted to be taking a leading role in helping to drive forward Scotland’s financial inclusion agenda.

“At a time when many people are struggling to pay for basic food and heating, a situation that will only worsen in the coming months, the role of CDFIs will become increasingly important. As locally rooted social enterprises which exist to provide finance to people and businesses who can’t get what they need from banks, we need these CDFIs to plug widening gaps in the market for affordable credit.

“One of our key jobs at Financial Inclusion for Scotland is to look at innovative ways we can expand this vital market to provide a lifeline for communities across Scotland.”

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