Financial Inclusion
Financial inclusion refers to access to a range of financial goods and services, including bank accounts, credit, insurance, savings and advice. Access to such goods and services is of course vital for economic well-being, but financial exclusion may also affect broader measures of deprivation in education, employment and housing. As Runnymede argues in Financial Inclusion and Ethnicity, to tackle financial inclusion effectively, it should be considered in the broader context of social justice, especially because lack of access to financial goods and services has wider effects on individuals. For a summary of the report, click here.
Financial Inclusion is a relatively new research and policy topic, but in the past few years the Government has adopted a range of policies aimed at tackling financial exclusion, including basic bank accounts, the Saving Gateway and the Child Trust Fund.
But despite the growing research and policy in addressing financial exclusion, there is virtually no research, data collection or analysis on levels and experiences of financial exclusion by ethnicity. Policy is being rapidly developed in this area without gathering and considering evidence on the possible differential impact of the policy on black and minority ethnic (BME) groups. For example, funding under the Social Inclusion Fund is being granted to a range of organisations, including at least one major consortium of community based money advice/support providers, without exploring whether or not there may be a need for targeted outreach to BME groups.
Another important area is pensions. In our response to the Thoresen Review, Runnymede noted a number of features of BME labour market participation that impact their pensions provision. Our conclusions in this area convinced us that there are significant differentials for at least some BME groups in terms of access to pensions. Click here to read more.
Runnymede's report, Financial Inclusion and Ethnicity, is the conclusion of a wide-ranging scoping exercise with the purpose of gaining a better understanding of the similarities and differences between white and Black and minority ethnic groups in their experiences of financial exclusion. However, the report is not simply a literature review, but makes 24 recommendations for future research and policy action. By considering the impact of financial inclusion on a person's capacity to participate in society and indeed to make important choices in their own lives, we can better understand why inequality of access to financial goods and services is bad, and how policy can best respond to financial exclusion.
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