The FCA has committed further support to regulated firms that propose evidence-based solutions for financial inclusion.
The UK regulator has asked companies to expand how financially inclusive they are, ensuring all consumers have access to useful and affordable financial products and services.
Nikhil Rathi, CEO of the FCA, said in a speech that improvement is needed in four key areas: financial education and numeracy, technology, commercial incentives, and diversity and inclusion.
“We stand ready to provide further dedicated support for the companies with the most promising ideas to help them grow and scale, building on schemes such as our Early and High Growth Oversight programme for up to 300 fast growing firms.
“But ensuring commercial incentives also means we have to be ready to work together to tackle risks that raise the costs of serving some customer groups,” said Rathi.
The speech estimated that 1.1 million UK adults (2.1%) do not have access to a bank account – the “ultimate example of financial exclusion.”
Involvement is needed from governments, institutions, and consumers to make a significant positive impact.
The speech ended with a call to action: “we need a new Enlightenment that can spark a solution to financial inclusion.”
The speech was delivered at the “Scottish Financial Enterprise” conference, hosted at PwC Glasgow.