Globally, Britain has a two-tier system: a thriving financial services sector on the one hand but millions of people who cannot access essential financial services on the other. Would the current Labour government make any difference to the millions of struggling residents excluded from the financial services market to help reduce such an exclusion? To navigate on the Debt Talk podcast on this month’s subject: ‘Financial Exclusion & lending’, with Ripon Ray, there are two panel members to share their experience and knowledge:

Fran Boait, Co-Executive Director of Positive Money, outlined the severity of financial exclusion due to branch closures, which not only impact low-income households but also marginalised communities, those who live in remote rural places, and small businesses. A fairer method needs to be developed within the context of digital currency, and alternative lending needs to be emphasised for the benefit of the wider public.

Shirina Ali, Manager of Limehouse Project in London, gave practical examples of how marginalised communities—such as Bangladeshi and Somalian—were impacted by branch closures by many banks in the UK. Many of her community members who are financially struggling do not trust mainstream lenders. They rely on word of mouth from their community members instead. She emphasised the importance of building trust with the local community and financial institutions. Therefore, how these institutions communicate with these community members must be clearer while encouraging financial education.

They also provided Debt Talk listeners with TOP TIPS for those considering developing policies impacting excluded communities.

The next podcast is on: ‘Hidden Worries during Christmas.’