Wednesday 8th July 2009, Grange Holborn Hotel, London, 08:45 - 14:00 (half day)

Financial Exclusion and Financial Capability: The Next Steps?

“None of us knew … that we were on the brink of the most serious financial crisis for decades. None of us would have predicted that governments around the world would now be pumping hundreds of billions of pounds into the financial system to support the global economy. And if financial inclusion is important when times are good - its doubly important when times are tough.”

Ian Pearson MP, Economic Secretary to the Treasury, 21 October 2008

Overview

The current period of economic turbulence and uncertainty has highlighted the unfairness, scope of the challenge and the depth of the divide between the majority of people who have access to a range of financial products and services and those who are financially excluded and, therefore, do not have access to bank accounts, financial advice, and insurance products and services.

With the Financial Exclusion Task Force now set to remain in existence until at least 2011, what progress has the government made in providing adults, who are financially excluded, with greater access to bank accounts, low-cost credit, remittance services, support and, convenient and easy access to impartial financial and debt advice? Is there a sufficient range of appropriate products available from organisations that are both familiar to and with those who are financially excluded?

Financial inclusion is not simply about taking corrective action to make markets – which are not naturally occurring - work more effectively by extending their services and expertise to the least well-off who, over time, may require financial advice or other products and services. Financial exclusion can impose heavy costs on individuals, their families and their communities that may lead to further social exclusion that in turn, may require further funds to take effective remedial action.

Financial capability includes the financial education, advice and information necessary to enable anyone to acquire the confidence and skills to make responsible financial decisions. As part of this, there is a great need for more and better financial education in schools, for young people and for adults.

Since 1997, in partnership with the third and private sectors, the government has devised long-term strategies to tackle the interrelated social and economic problems facing the financially excluded. For example, the government introduced basic bank and post office accounts; the saving Gateway; and, the Consumer Credit Act 2006, the final phase of which was implemented on the 1st October 2008; and, in 2004, it committed itself to halving the number of people, 2.8 million, living in 1.8 million households that do not have access to any kind of bank account within two years; they are 60% towards that target.

Agenda

This timely forum will provide delegates with the opportunity to discuss the extent, nature and causes of financial exclusion and identify ways in which it can be tackled.

08:45	Registration and Coffee
09:30	Chair’s Opening Remarks Bernie Morgan, Chief Executive, Community Development Finance Association, Member, HMT Financial Inclusion Task Force
09:40	Raising Levels of Financial Capability Among UK Consumers What is the most effective way to deliver financial education? Making informed financial decisions by: Providing GCSE, AS and A level equivalent qualifications in personal finance Operating the ifs Student Investor for teenagers to learn about stocks and shares Providing adults with a learning Programme in Personal Financial Planning Anne Kiem, Dean of Further Education, ifs School of Finance
10:00	Responsible Credit: A Programme for Change Action to tackle irresponsible lending Renewed efforts to improve financial capability: understanding the needs of low income households Greater regulation and improved enforcement of lending in the UK Community finance initiatives Damon Gibbons, Head of Policy and Partnerships, Centre for Economic and Social Inclusion
10:20	Financial Inclusion – Delivering Financial Inlcusion in Rural Areas People in rural areas experience the same financial challenges as people living in towns and cities. But living in a rural area brings additional challenges. Like poverty, financial exclusion is less visible in rural areas compared to urban areas. This makes it harder for service providers to target support to the people who most need it. Poor public transport system, higher service costs and poor economies of scale are also a challenge when delivering debt advice and credit union outreach services in rural areas. It is therefore important financial inclusion policy and programmes consider rural circumstances so that they deliver effectively in rural areas. Will Aston, DWP Strategic Rural Financial Inclusion Champion, Commission for Rural Communities
10:40	Coffee Break and Networking
11:00	Tackling Financial Exclusion – The Financial Inclusion Action Plan Financial Inclusion Action Plan 2008-2011: key points Savings Gateway : Money Guidance Pathfinders: update National strategy for financial capability: Budget increase for 2009/10 Making the most of your money: Unemployed Older people NEETs New parents Curriculum changes: money management courses for school students Workplace courses Extra assistance during severe economic downturn: extending partnership working with community groups and third sector organisations Extending the role of credit unions Chris Pond, Director, Financial Capability, Financial Services Authority
11:25	Black, Minority and Ethnic (BME) Communities and Financial Exclusion BME communities: differences exist within and between population groups BME communities experience of financial exclusion Addressing financial exclusion – action for change: Postbank: the post office closures and the need for change Understanding the needs of older people: extended outreach work by government departments, banks and utility companies Omar Khan, Senior Researcher and Policy Analyst, Runnymede Trust
11:45	Intervening To Break the Cycle of Financial Exclusion Context of financial exclusion: 70% financially excluded are social housing tenants Working with the housing sector to assist and develop strategies and initiatives to promote financial inclusion amongst tenants and residents; these include: accessing money advice accessing bank accounts working in partnership with credit unions and other agencies Promoting the benefits of prevention and early intervention Sharon Wheeler, Strategic Financial Inclusion Champion for Housing, Chartered Institute of Housing
12:05	Financial Exclusion: The Role of Banks in the Current Economic Climate Partnering with the public ,the third and private sectors to design, market and provide new products to reduce financial exclusion: Encouraging, supporting and providing adult, financial literacy Training frontline staff to communicate clearly with financially excluded customers because they may not be used to financial products Clear explanation of other product features and other related products The responsibilities of customers John Letizia, Director of Government Affairs, British Bankers Association
12:25	Questions and Answers Session
13:10	Chair's Summary and Conclusions
13:15	Lunch and Networking
14:00	Close

*programme subject to change without notice

Audience

Delegates will be drawn from the following organisations: third sector organisations, credit unions, benefit managers' debt-advice, independent money advice organisations, independent financial advisers, elected members, directors of adult services, directors of pensioners’ organisations, registered social landlords, housing advisors, managers Job-Centre Plus, bank managers, solicitors, prison teaching staff, teachers of adult-learners, directors of BAME organisations.

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