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Guidance body calls on banks to promote financial well-being  

The Money and Pensions Service has released a report today calling on the retail banking sector to put customers’ financial well-being at the centre of their corporate purpose. 

It also wants banks ensure their products and services include features to help people improve their ability to manage their money well. 

The report argues that while the sector has made progress with good-practice features built into current and savings accounts, there is room for improvement and greater take-up across the sector.  

It is based on interviews with employees across 19 banks, building societies, financial technology firms and one credit union. 

Currently, nine million people in the UK are struggling with problem debt, 11.5 million do not even have £100 in savings, and a further 24 million people do not feel confident making decisions about financial products and services. 

MAPS also points out low financial capability is contributing to tens of millions of people in the UK lacking the resilience needed to deal with unexpected events such as job loss, while debt can affect a person’s mental health. 

MAPS chair Hector Sants says“Money is a fundamental part of life and is central to people’s health and wellbeing. A population that can manage their money and pensions well is essential, and the retail banking sector has a critical and central role to play in moving the dials for the UK population.  

It is time for the sector to take a much more proactive, holistic approach to financial wellbeing, shifting the balance from the cost of remediation to investment in prevention. 

“We encourage the sector to work with us to develop and implement the changes needed to improve people’s financial capability, as well as rebuilt trust and confidence in financial services.” 

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. christopher Handley 27th June 2019 at 12:29 pm

    This has become a complex issue, due to low inflation and low interest rates, high property growth over the last 10 years, minimal wage growth (even negative after inflation), easy access to credit even for those with poor credit history, and high expectations of lifestyles that most cannot afford, and a live for today culture. But will employers pay to educate or even advise their staff financially ?

  2. So The Money and Pensions Service wants banks to promote financial well being.

    This proves yet again that do good bureaucrats just haven’t the first clue.

    It is the main purpose of banks to ensure that people borrow money – otherwise they haven’t got a business. The best financial well being is to be debt free that is precisely contrary to what banks are there for.

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