Financial Inclusion

Information about how the council and its partners can help local people gain access to financial products and services and learn to manage their finances.

What is Financial Inclusion?

Financial Inclusion is a range of activities and projects aimed at tackling two main issues:

  1. Financial Exclusion, which describes a person’s inability to access appropriate financial products and services.
  2. Financial Capability, which describes the skills that people need to budget and plan their money for the future, their attitudes to money and financial institutions, such as banks and credit companies.

Financial Exclusion

Too many people cannot gain access to appropriate financial products and services at present; they struggle to obtain affordable credit or helpful financial advice and face barriers in opening and operating bank accounts. Financial exclusion blights the lives of many millions of people; it increases the costs they bear for basic services; it makes them vulnerable to illegal or high cost lending; it reinforces social exclusion.

Financial services play an important role in most people’s everyday lives. Many people rely on their bank accounts to pay their bills and have their wages paid into. Products such as mortgages and pensions enable people to buy homes and save for their futures.

Yet, some people do not have access to even the most basic of financial services and products, resulting in them paying increased prices for the services that they can and do access.

People who are financially excluded find themselves experiencing one or more of the following issues:

  • No bank account
  • Reliance on doorstep/high-interest credit
  • No savings, insurance and/or pensions

Financial Capability

This is people’s knowledge and skills to understand their own financial circumstances, along with the motivation to take action. Financially capable consumers plan ahead, find and use information, know when to seek advice and can understand and act on this advice, leading to greater participation in the financial services market’

Being able to make sound financial decisions is an essential life skill. It enables people to manage their day-to-day finances and empowers them to be able to cope with unforeseen emergencies and plan for their futures.

Yet, many people lack these necessary skills, which often results in greater costs to their own financial wellbeing, and to the local economy. The increase in personal responsibility on people to manage their finances and has led to a ‘live for today, pay later’ culture.

What is the East Riding Financial Inclusion Strategy?

Launched in January 2011, the East Riding Financial Inclusion Strategy 2019 – 2023 outlines the individual, community and economic costs of financial exclusion and seeks to provide a framework to shape policy and service delivery to all residents and employees living and working in the East Riding.

Although the East Riding is widely regarded as a prosperous area, deprivation levels in some areas remains high and this means that many people are often not able to benefit from the area’s success. The strategy aims to reduce the inequalities caused by financial exclusion and poor financial capability.

East Riding of Yorkshire Council - Financial Inclusion Strategy (pdf 480kb)

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