The rapidly evolving digital landscape is transforming the way we live, work and interact, and, importantly, manage our finances. In a recent speech, Nikhil Rathi, Chief Executive of the Financial Conduct Authority (FCA), shared his stance of leveraging ‘consumer tech as a force for good’. Consumer tech within financial services brings the possibility of ‘more services and products for the financially excluded’, for example tech helping people gain financial advice via artificial intelligence-powered portals, and offering convenience from faster, digitised services.
However, this shift towards technology, particularly in the financial sector, comes with its own set of challenges. One challenge is the risk of financial exclusion persisting due to digital exclusion. Rathi shares this concern with the analogy of ‘digitised payments leaving behind people who rely on cash’. This example shows how financial exclusion can persist due to individuals not being digitally capable, and therefore unable to engage with the ‘consumer tech for good’.
We Are Group share Rathi’s concern and understand the challenges of financial and digital exclusion well. Envisioning a world and a system where no one is left behind is what spurs our services – Training, Advice, and Guidance – which ultimately enable people to live better lives by providing the skills, assistance, and knowledge they need to achieve digital capability and financial stability.
Recently released, the Labour party's Plan for Financial Services also shares this concern of financial exclusion and amplifies it on a political platform. One of the six policy priorities in Labour’s plan sets out to address both digital and financial exclusion in the UK. A key point within this priority is the development of a national financial inclusion strategy. Recognising that financial literacy is crucial, Labour intends to coordinate efforts across the public and private sectors. They aim to work with the Department for Education to increase access to financial literacy education in schools and colleges, thereby equipping young individuals with the necessary knowledge and skills to empower them to make informed financial decisions in the future.
Digital inclusion is also a critical step to achieve financial inclusion. 6.8 million people in the UK have ultra-low digital capability (LBG Consumer Digital Index 2023), not to mention the 3.9 million digitally excluded individuals in the UK (Financial Conduct Authority). According to their plan, Labour intends to explore ways in which the Government and industry can work together to support and include these individuals, providing access to digital tools, education, and resources. By doing so, they aim to ensure that everyone has equal opportunities to engage with digital services and therefore have access to consumer tech within financial services.
With an election expected to occur in the ‘second half of 2024’ (BBC), it may be a possibility that Labour become the elected party of Government. If this scenario were to play out and their Plan for Financial Services were to be implemented, We Are Group would aim to be a key player in the national digital inclusion strategy. We would apply our expertise in creating social impact, our multichannel support that offers both in-person and virtual assistance, our local community engagement through our Community Partner Network, and our comprehensive management of digital inclusion programmes underpinned by our Wel-Tech Platform. We Are Group already manage and deliver national programmes for Government departments, including the Home Office, Department for Education, and HM Courts and Tribunals Service, so we are equipped and experienced to execute new Government programmes that intend to make a social impact.
The alignment between the FCA as a regulatory body, organisations including ourselves, and political parties on the issue of digital and financial exclusion paints a hopeful picture. It is reassuring to see that the commitment to leaving no one behind is being prioritised across different sectors.
As Nikhil Rathi points out, ‘investing from the outset on financial inclusion will build societal trust.’ So Labour’s priority of addressing financial exclusion could potentially work in their political favour as it resonates with the needs and concerns of the population.
As we move forward, it is crucial that we continue to focus on these issues, ensuring that the benefits of technology and financial services are accessible to all, regardless of their digital capability. After all, true progress can only be achieved when no one is left behind.
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