This set of papers is the result of a seminar organised in June 1997 by the New Policy Institute and the UK Social Investment Forum into the problems of low-income families in gaining access to financial services and whether mutual organisations can help meet their financial needs. The conclusion is that mutuals can help fill this gap - but to do so they must work in partnership with conventional financial organisations. Lack of a bank or building society account, or possession of an account with severe restrictions, are therefore the principal conditions for financial exclusion.
Financial exclusion can hit any household.
This problem has grown with deregulation and technological change in the financial services industry. Many households have been helped by these changes, with easier access to credit and a wider range of savings opportunities. Using computerised mapping technology to show where profits are highest, banks and building societies have been pulling out of poorer areas. Pat Conaty records that all 24 building society branches have closed in Birmingham s Aston ward since 1986, while Ed Mayo refers to a similar pattern in London. The effect of such withdrawal is made worse by the disappearance of gas and electricity showrooms from high streets, which makes cash payment much harder and access to a bank more important than in the past.