Podcast returns to explore how UK policymakers can create a more inclusive financial system

Season three of Innovation in Financial Inclusion centres on innovative ways to tackle financial exclusion and what can be learnt from other countries to create greater financial inclusivity.

Following two successful seasons, the University of Salford’s Innovation in Financial Inclusion podcast will return on the 16 October 2024. Hosted by Dr Pål Vik, an array of guests will join the conversation across the five-episode series, to explore how the UK can create a more inclusive financial system drawing on lessons from other developed countries, such as the US, Germany and France.

According to social lender Plend’s Financial Inclusion Report 2024, almost half (44%) of adults in the UK are currently financially vulnerable. While data from Fair4All Finance highlights millions of people are unable to access mainstream services and products that can support their financial needs. As a result, everyday life events or financial shocks could force them into vulnerable circumstances.

Dr Pål Vik, Senior Research Fellow at Community Finance Solutions, the University’s independent research and development unit specialising in financial inclusion and community finance, will return as host for the third season of the podcast.

On the importance of this season, Pål said: “The cost-of-living crisis has led to a significant increase in financial vulnerability and made it harder for low-income households to access affordable finance. It is more pressing than ever to consider how we can scale up provision of affordable finance and the role government and financial institutions can play in this.

“Unlike most of its developed country peers, the UK does not have any formal requirements on banks to support financially excluded consumers and businesses, directly or indirectly through community finance providers. In this season, I am looking at three countries that have taken different approaches to build a more inclusive financial system, from which UK policymakers could learn.”

The latest season of the podcast takes listeners around the world to compare the different forms of support banks in other regions offer to create a more inclusive financial system. Alongside his guests, Pål will explore the US Community Reinvestment Act, the role of community banks in Germany and how French policy and regulation underpins partnership working between banks and community finance providers.

Similar to previous seasons, season three will include a number of financial professionals and industry leaders, who join the conversation to offer their expert perspective on the action that needs to be taken to improve the UK’s financial system. The University of Lincoln’s Professor Karl Dayson, CDFI Friendly America’s Mark Pinsky, Institute for Work and Technology’s Dr Franz Flögel, and Finance Innovation Lab’s Kay Polley, are amongst this season’s guests.

In 2016, a survey from the Bank of England reported that 30% of small businesses were unable to access the necessary finance they needed to grow. While more recently, research from Praetura revealed that three in five (59%) SMEs and their brokers say it is more difficult now to access the funding they need to grow than in the last five years, highlighting the impact of an unfair financial system on not only Britain’s most vulnerable consumers but also its small and medium enterprises.

This season of the podcast aims to show policymakers and regulators different approaches to compel banks to play a greater role in financial inclusion, drawing on policy from comparable developed countries.

Pål concluded: “Financial inclusion is essential for a thriving and prosperous economy. We have dedicated more than 20 years of our time within the Community Finance Solutions unit, researching and collecting data, witnessing firsthand the devastating impact the lack of access to mainstream financial support can have on underserved communities.

“We hope the podcast will not only educate people on the topic of financial inclusion, but also shine a light on the effect it could have on people’s lives, while helping to provide solutions to tackle the issue.”

The latest episodes of Innovation in Financial Inclusion will launch bi-weekly from the 16 October 2024 and are available on all major podcast platforms, including Spotify.