Leading policy-makers and professionals from across the private, charity and not-for-profit sectors have joined forces to create a new organisation to tackle financial exclusion.
Financial Inclusion for Scotland (FIS) was launched with the aim of supporting people who find it difficult to access fair or affordable financial services, such as free banking, credit and money management services.
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.”
Stephen Pearson, chairman, Financial Inclusion for Scotland.
Managed by Social Investment Scotland (SIS), FIS has 10 founding members with a shared commitment to find new ways to expand financial inclusion north of the border.
It will pick up and progress the agenda from the Carnegie Working Group on Affordable Credit, which drew to a close in 2021.
The founding members include Scottish Financial Enterprise, Fintech Scotland, the Money and Pensions Service and not-for-profit community lender Scotcash, among others.
Developing crisis
Many households throughout Scotland are struggling to deal with the dual impacts of Covid and the cost-of-living crisis.
There is also emerging evidence that more people are using unlicensed money lenders or loan sharks than before Covid-19.
FIS chairman and financial services veteran Stephen Pearson 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 the 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 smartphone money management tools.”
We are delighted to be a founding member of Financial Inclusion for Scotland, a group that launches today to provide better access to fair and affordable financial services.
Read the #FIS press release to find our more – https://t.co/8mtTpUFQuR pic.twitter.com/TYVHFkJqQN
— Social Investment Scotland (@socinvestscot) September 22, 2022
Mr Pearson added: “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.”
SIS chief executive Alastair Davis said one of the key jobs for FIS would be to look at innovative ways to use Community Development Financial Institutions, which offer financial help to those who have poor credit, as a “lifeline for communities across Scotland”.
FIS will be holding its first conference on November 9, with Deputy First Minister John Swinney MSP already confirmed as keynote speaker.
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