1. Transact, the national forum for financial inclusion Chris Hobson, Transact Manager Zoe Dixon, Membership Development Officer

2. The development of the FI agenda in Government 1997-2011 1997: Social Exclusion Unit set up following the election of the Labour Government to develop Strategy for Neighbourhood Renewal. Policy Action Team 14 investigates financial inclusion. 1999: Policy Action Team 14 publishes report, ‘Access to Financial Services’ First explicit recognition of the connection between financial and social exclusion. 2000-2005: Series of initiatives aimed at supporting access to financial services (primarily banking), including: Universal Banking Services (2000); Basic Bank Accounts (2003); POCA (2003); Mainstream transition to direct payment programme (2003-05)

3. The development of the FI agenda in Government 1997-2011 2004: ‘Promoting Financial Inclusion’ published The first comprehensive financial inclusion strategy published by the Treasury included these announcements: Financial Inclusion Fund, for the period 2005-08, at £120m; Financial Inclusion Taskforce to advise government and monitor its progress. 2005: Financial Inclusion Taskforce launched The Taskforce brought together individuals from a range of sectors to advise the government, with the overall objective of monitoring progress towards tackling financial exclusion. 2005-6: Treasury Select Committee assessed the Government’s financial inclusion strategy and activities The Committee was chaired by John McFall, MP.

4. The development of the FI agenda in Government 1997-2011 2007: ‘Financial Inclusion: The Way Forward’ published The financial inclusion strategy for the spending period 2008 – 11. Announcements included the continuation of the financial inclusion fund into the 2008-11 spending period, at £130m. 2007: Launch of the DWP’s ‘Now Let’s Talk Money’ Campaign, an intermediary-focused initiative aiming to stimulate demand for banking and affordable credit products by raising awareness among intermediaries. 2007: ‘Financial Inclusion Action Plan 2008-11’ published Broad objectives are to ensure that everyone has access to appropriate financial services, building on the themes of ‘ABC’ (Advice, Banking and affordable Credit).

5. The development of the FI agenda in Government 1997-2011 2007: Experian mapping exercise – mismatch between supply and demand of affordable credit and wider FE mapping. 2008-11: £7m DWP Financial Inclusion Champions Scheme runs. 2011: Financial Inclusion Taskforce ends along with Financial Inclusion team within the Treasury – Financial Inclusion ‘mainstreamed’ across government. 2011-onwards: Financial Inclusion on the remit of Social Justice Cabinet Committee; Financial Inclusion on remit of individual banking/savings/insurance teams within Treasury. Other departments take responsibility for individual agendas.

6. Joining the Dots – Autumn/Winter 2010 Transact believes that the views of existing financial inclusion stakeholders should be at the heart of all discussions focused on any new financial inclusion strategies. To help do this we conducted a SWOT analysis of FI in the UK. 9 regional events, meeting with over 250 members Member survey, reaching over 350 members 1 – 1 conversations with key stakeholders in government and industry ‘The Opportunities and Challenges facing the UK’s Financial Inclusion Sector’

7. Joining the Dots - Opportunities ThemeRegions Discussed To improve joined up working, building new partnerships and improving cohesion All To demonstrate the economic and social value of financial inclusion work to partners and funders Wales; Yorkshire and the Humber; South West; North East; Midlands To embed financial inclusion into other agendas, making clear the links between financial inclusion and other forms of inclusion South East and East of England; Scotland; Yorkshire and the Humber; South West; To use the roll out of Money Guidance to reach new clients and raise awareness of financial inclusion South East and East of England; Wales; Yorkshire and the Humber; North West To work more strategically with local authorities and the financial services sector South East and East of England; Scotland; North East; To take advantage of the Big Society and localisation agendas Yorkshire and the Humber; South West; Midlands To develop new innovative services to meet a changing and growing need Scotland; North East; North West

8. Joining the Dots - Challenges ThemeRegions Discussed Reductions in funding and end of current funding streams All Rising unemployment and changes to welfare benefits results in increased client needs All Joined-up working can be a challenge, due to resources levelsand competition for funds Scotland; Yorkshire and the Humber; South West; North East; North West; Midlands Lack of meaningful support for the affordable credit sector South East and East of England; Wales; Midlands; South West Loss of skills in the sector as staff move to more secure employment Scotland; Yorkshire and the Humber; Midlands Ensuringfinancialcapabilityis introduced in an appropriate and effective manner South East and East of England; North West The notion of the ‘Big Society’ and how this will work is not yet understood – organisations do not yet know how they will work within this structure Wales; South West;

9. Taking a joined-up approach forwards… Continued work on a joined-up approach must ensure: –all existing resources and experience are being best utilised. –new opportunities for delivering or developing financial inclusion are identified and exploited. –opportunities for adding value through partnerships are identified and utilised. –current and future activity is targeted – informed by a shared vision of what success looks like and who is involved in delivering this. –the value of financial inclusion to the individual and wider communities is understood and demonstrable. Challenge to remain valid without ‘direct input’ from Government

10. Our proposal… Three representative and easily accessible panels created to capture activities within the main arenas of financial inclusion activity. They will work both individually and together to develop a consensus on financial inclusion goals and create a clear strategy for financial inclusion development: – Delivery - representing a range of organisations in terms of geography and activity type. – Financial service provision - British Bankers’ Association’s financial inclusion and capability panel to act as a central forum for engaging with the rest of the model, with other industry partners engaged as and when. – Research and policy - consisting of the main FI research bodies and individuals, bringing together existing research into one Research Hub. The panel will identify gaps in discussions, working closely with funders to inform future research streams.

11. How could it work? Model drivers –Secretariat: The Secretariat would manage the model, providing support to all three panels, the Steering Group and individual panel members. –Steering Group: The operation of the model will be overseen by representatives from each of the three panels, who will come together periodically to form a Model Steering Group that will review the working of the model and make recommendations for improvements. Communication tools –Transact: Panel area on website; panel newsletters and e-bulletins; hosting of panel documents; facilitation of meetings; regional and national event management; thematic and annual reporting.

12. Discussion –Since the cessation of the Taskforce the FI agenda has been mainstreamed throughout Government agendas. Do you think that it is important that the agenda remains joined up and what impact do you think this might have in the future? –Given the varied pressures on organisations and the lack of drive from Government, how do we ensure engagement from those involved? Do you think the proposed model provides a strategic steer for the agenda and how would you envisage engaging with it?