The UK Payments Association is asking policymakers and the Fintech sector to support consumers with community finance. This will take place in a Sandbox that pairs community lenders with Fintechs.
Tony Craddock, Director General of The Payments Association, says financial inclusion remains critically important, as many people cannot access financial services. Craddock says the sector faces significant barriers to growth, limited resources and regualtlory challenges.
“We hope policymakers realise the enormity of this issue and take our recommendations on board.”
The Association is also calling for a “fairer regulatory framework that acknowledges the unique mission of community finance organizations is also needed. This can be coupled with business rate relief and a kitemark system to signify trust and quality.”
The group points to estimates voiced by the FCA that claim one in four UK adults have low financial resilience.
Additionally, the Association states that Debt Justice reports that 6.7 million Britons are in severe financial difficulty.
The Association has published a White Paper that outlines the issue and provides some recommendations.
