New Reports Make the Case for Financial Inclusion as a Driver of Economic Growth and Business Opportunity- Press Release

PRESS RELEASE- FOR IMMEDIATE RELEASE

New Reports Make the Case for Financial Inclusion as a Driver of Economic Growth and Business Opportunity. 

Now available on the homepage of the Financial Inclusion Commission website: https://www.financialinclusioncommission.org.uk/ 

London, April 2025 — The Financial Inclusion Commission has today published two reports — The Economic Case for Financial Inclusion and The Business Case for Financial Inclusion — now available with easy access on the homepage of its website. Together, these reports set out a compelling vision for financial inclusion not just as a moral imperative, but as an economic and commercial necessity.

At a time when the UK faces persistent economic challenges and growing inequality, the Commission’s evidence makes clear that improving access to appropriate financial services can increase productivity, stimulate growth, and reduce pressure on public services. Financial inclusion, it argues, is a key lever for unlocking both individual and national potential. The Economic Case for Financial Inclusion outlines five pathways through which inclusive access to financial services directly supports economic growth:

• Improved labour market participation, especially among people held back by financial insecurity and debt-related health issues.

• Increased workplace productivity, by alleviating financial stress that leads to absenteeism and underperformance.

• Support for small businesses, through more accessible financing and investment confidence.

• Boosted local economies, as financially secure consumers and businesses are better able to spend in their communities.

• Reduced public expenditure, as fewer people require intensive support from the health, social care, and welfare systems.

The report finds that financial distress acts as a "double drain" on the economy. By contrast, greater financial resilience translates into a more engaged, healthier, and productive workforce. 

The Business Case for Financial Inclusion, originally presented by John Godfrey at the Lord Mayor’s Financial Literacy and Inclusion Summit, focuses on the untapped market and strategic advantages for the financial services industry and employers. It urges companies to move inclusion from a peripheral CSR (Corporate Social Responsibility) issue to the core of their business models. Among the key arguments:

• 1 million people in the UK still have no bank account.

• 8.5 million have no pension savings.

• One in five could not cover living costs for a month if they lost their income.

These figures point to a vast under-served customer base. Businesses that develop inclusive, accessible products — from workplace savings schemes to microinsurance for gig workers — stand to grow their market while strengthening society’s overall financial health.

The Commission calls for a joined-up national approach, integrating financial education, inclusive product design, and regulation that encourages innovation for those most at risk of exclusion. It also renewed its call for a secondary statutory duty for financial regulators to “have regard to financial inclusion,” ensuring that those not currently served by the market are no longer overlooked.

“The work of the FIC has not only identified an important social issue, but also an under-served market. Greater inclusion, better financial education and access to guidance can create a larger and more active customer base for our industry and drive the creation of new financial services and products, much as auto-enrolment has for pensions. To achieve this requires collaboration across policymakers, regulators and the industry – but this is a highly worthwhile goal both socially and economically.” 

John Godfrey, Financial Inclusion Commissioner, Managing Director City UK and former Head of No 10 Policy Unit.

“When people can access the financial services they need, they can contribute more to our economy. That’s common sense, and this paper sets out five common sense pathways from financial inclusion to economic growth. I look forward to the Government’s National Financial Inclusion Strategy helping people across the nations and regions to play their part in the growth of the UK economy.”

Charles Randell, Financial Inclusion Commissioner, former Chair of the Financial Conduct Authority 

The reports are available to download now at: www.financialinclusioncommission.org.uk,
For further comment, quotes and information, please contact rachael@financialinclusioncommission.com