Cashing Out: Assessing the risk of localised financial exclusion as the UK moves towards a cashless society
Whilst academic, commercial and policy literature on financial exclusion is extensive and wide-ranging, there have been very few attempts to quantify and measure localised financial exclusion anywhere in the world. This is a subject of growing importance in modern UK society with the withdrawal of cash infrastructure and a shift towards online banking. This research develops a composite indicator using a wide-range of input variables, including the locations of existing cash infrastructure, various demographic factors (such as income and housing tenure) and other freely available lifestyle data to identify areas at greatest risk of financial exclusion, thereby aiding organisations to develop intervention strategies to tackle the problem. The indicator illustrates that whilst there is no apparent correlation between financial exclusion and deprivation, pockets of extreme financial exclusion are generally found in deprived communities, and affluent, suburban areas tend to score consistently more favourably and consequently carry less risk. The attributing causes vary, from a lack of infrastructure, to low car availability, but income levels have a pronounced influence. Three policy proposals are put forward, including offering banking services at PayPoint outlets, and converting cash machines to cash recyclers, but improving digital adoption was found to be the most effective intervention, provided that it is implemented by community organisations. Policies purely targeting infrastructure provision or addressing social exclusion are unlikely to be effective, as community-based initiatives coupled with wider reforms to the financial system are needed.
Code (0)
등록된 구현이 없습니다.
Similar Papers 제목 키워드 기반
Exploring Causes, Effects, and Solutions to Financial Illiteracy and Exclusion among Minority Demographic Groups
Americans across demographic groups tend to have low financial literacy, with low-income people and minorities at highest risk. This opens the door to the exploitation of unbanked low-income families through high-interes…
The Impact of Corporate AI Washing on Farmers' Digital Financial Behavior Response -- An Analysis from the Perspective of Digital Financial Exclusion
In the context of the rapid development of digital finance, some financial technology companies exhibit the phenomenon of "AI washing," where they overstate their AI capabilities while underinvesting in actual AI resourc…
Assessing Regulatory Risk in Personal Financial Advice Documents: a Pilot Study
Assessing regulatory compliance of personal financial advice is currently a complex manual process. In Australia, only 5%- 15% of advice documents are audited annually and 75% of these are found to be non-compliant(ASI 2…
Managing Financial Climate Risk in Banking Services: A Review of Current Practices and the Challenges Ahead
The document discusses the financial climate risk in the context of the banking industry, emphasizing the need for a comprehensive understanding of climate change across different spatial and temporal scales. It highligh…
ManagementAssessing the regulatory framework of financial institutions in Canada in the context of international climate risk management practices and Canadian net zero emission targets
The document addresses the essential role of financial regulatory frameworks in mitigating climate-related risks within the financial sector. The assessment evaluates Canada's efforts to establish a regulatory framework …