Uniting for Financial Inclusion: Insights from the Fair4All Finance Conference

16 Jul 2024

  • Financial Inclusion for Scotland

Financial Inclusion for Scotland Associate, Sharon MacPherson recently had the privilege of attending an insightful financial inclusion conference that highlighted the importance of building financial inclusion together through collaboration. The Fair4All Finance event was a melting pot of ideas, experiences, and aspirations aimed at fostering a more inclusive financial ecosystem. Here are my reflections on the key themes, the inspiring stories shared, and the collaborative strategies proposed to encourage investment and tackle the poverty premium.

The Power of Collaboration in Financial Inclusion

"The central theme of the conference was the power of collaboration. Experts from various sectors—financial institutions, non-profits, government agencies, and tech innovators—emphasised that no single entity can achieve financial inclusion alone. By working together, leveraging each other's strengths, and sharing resources, we can create a more comprehensive and effective approach.

Key Takeaways:

  1. Cross-Sector Partnerships: Partnerships between the public and private sectors can drive substantial progress. Governments can provide the regulatory framework and support needed, while private companies can bring innovation and scalability.
  2. Community Engagement: Involving local communities and understanding their specific needs is crucial. Grassroots organisations often have the trust and insight necessary to implement solutions that are culturally and contextually appropriate.
  3. Technology as an Enabler: Fintech innovations can bridge gaps in traditional financial services. Integrating income maximisation in the customer journey was highlighted as one way to bring positive outcomes to underserved populations.

Encouraging Investment in Financial Inclusion

"Investing in financial inclusion is not just a moral imperative but also a significant economic opportunity. The conference highlighted various strategies to attract and sustain investment in this sector.

Key Strategies:

  1. Impact Investing: Investors are increasingly looking for opportunities that generate social and environmental benefits alongside financial returns. Financial inclusion projects often align perfectly with impact investing goals.
  2. Blended Finance: Combining public and private investment can mitigate risks and attract more capital. Public funds can be used to de-risk investments, making it more appealing for private investors to participate.
  3. Incentivising Innovation: Creating a conducive environment for fintech startups through grants, tax incentives, and supportive regulation can spur innovations that drive financial inclusion.
Fair4all Conference Poverty Premium

Tackling the Poverty Premium

One of the most poignant discussions was around the ‘poverty premium’—the extra costs that people on low incomes often pay for essential goods and services. Addressing this issue requires a multifaceted approach and a deep understanding of the lived experiences of those affected.

We heard moving stories from those with lived experience of the poverty premium, ranging from having to pay more to access credit because of past financial difficulties to paying more for car insurance as a result of living in a deprived area.  It was clear these issues compounded exclusion and limited life chances. 

The panel discussion on the new UK Labour government's commitment to a nationwide financial inclusion strategy outlined which areas require prioritisation, presenting a significant opportunity to make meaningful progress. By taking a holistic, collaborative, and data-driven approach, the government can ensure that financial services are accessible, affordable, and fair for all citizens. This strategy has the potential to not only address immediate financial barriers but also to lay the foundation for a more focused and effective approach in the UK.

Moving Forward: A Collective Effort

The conference concluded with a call to action for all stakeholders to continue building on the momentum. By fostering an ecosystem of collaboration, encouraging sustained investment, and prioritising the needs of the underserved, we can move closer to achieving true financial inclusion.

Sharon Macpherson

In the words of one of the keynote speakers, "Financial inclusion is not just about providing access to financial services; it's about creating a world where everyone has the opportunity to thrive." As we move forward, let us remember that it is not possible or desirable for only one entity to solve financial exclusion and that the journey towards financial inclusion is a shared responsibility. Only by coming together can we build a more inclusive and equitable financial future for all."

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