Report recommends banking charter to boost financial inclusion

A report from the London Assembly has called for the creation of a banking charter to ensure all young people in London have a bank account.

The report, entitled Short Changed: The Financial Health of Londoners, focuses on financial inclusion and offers recommendations to help Londoners get more access to high-quality, affordable financial services.

Insecurity

According to the London Assembly, more people in London are turning to high-cost credit providers to meet financial requirements, with young Londoners being more affected by economic uncertainty and financial insecurity than previous generations.

With 44 per cent of 18 to 34-year-olds in the UK experiencing financial difficulty, the report has called for more support to be provided to enable young people to have access to the right services, with commitment from banks to provide all 16 to 18-year-olds with a bank account being among the recommendations.

The report also suggested that an annual survey of the financial activity of London households is commissioned to help gain a better understanding of the city’s underbanked communities.

Benefits

Education was also a main focus of the report, with the London Assembly recommending that the Mayor of London encourages banks, credit unions, and financial education providers to help schools and colleges teach young people about the benefits of banking.

The report also called for the collaboration of the Mayor and London’s financial services industry to deliver financial education that can be built on and to make use of new and creative ways to provide young people in London with financial education.