Responsible Finance: The Industry in 2017
Posted by: Eden Morrison on January 11 2018 | Tagged: General news
Scotcash’s trade body Responsible Finance works to provide access to fair finance across the UK. The organisation supports a network of finance providers across the UK which share the values of Scotcash to provide financial products to those who are often financially excluded.
2017 was a successful year for the Responsible Finance Industry, and this can be seen outlined in their report Responsible Finance: The Industry in 2017. The report is based on a survey conducted by Responsible Finance, which was completed by 43 responsible finance providers. The reporting period is 1st April 2016 until 31st March 2017. The survey has been conducted annually since 2003 and was previously known as Inside Community Finance.
It was reported that in 2017 £235 million was lent to over 61,163 customers through responsible finance providers. This included £22 million to 55,348 individuals, whilst helping customers to deposit over £3 million into savings accounts.
The report highlights the continued need for accessible financial products and high cost credit alternatives:
“With fairness and behaviour in financial services still under scrutiny and continued regulatory intervention into the high cost credit market, consumers need access to affordable credit more than ever. Unsecured consumer credit grew by 10% in the year to June 2017, and over 4 million people have either failed to pay domestic bills or meet credit commitments in 3 or more of the last 6 months. More than 8 million individuals rely on credit to pay for essential household bills, often in the form of credit cards, overdrafts, or using high cost lenders or illegal loan sharks.
Economic instability, squeezed household budgets, and living costs outstripping incomes have exacerbated the precarious position of many in the UK. The responsible finance industry is committed to supporting this market, often providing wraparound services to promote financial wellbeing and literacy and encouraging saving.”
To read the full report and findings click here.