Financial Inclusion
The lack of access to affordable financial services can potentially have devastating effects on households and communities alike. Financially excluded households may often have to resort to doorstep lenders. The high interest rates and often predatory lending practices of these types of lenders may leave the households at risk of over-indebtedness and further social exclusion. At a community level, financial exclusion may entrench social deprivation through the lack of finance for self-employment and for community development.
Since its inception in 1999, CFS has been a leading participant in research and policy debates on financial exclusion. We have conducted research into numerous fields relating to financial services, including:
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Financial and social exclusion
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The impact of community finance initiatives
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The development of CDFIs
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Financial and operational sustainability
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Indebtedness, debt advice and financial education
CFS is also a major contributor to the development of local initiatives and models to promote financial inclusion. We work in partnership with public, private and voluntary sectors and we specialise in working with communities to decide which financial solution would best fit their locality and circumstance.
One of our key contributions has been the creation of a model for the provision of affordable and appropriate financial services for excluded households and enterprises called Community Reinvestment Trusts (see box below).
Community Reinvestment Trusts In 1999, CFS with other partners developed an alternative model for the provision of loans to the financially excluded households and small businesses called Community Reinvestment Trusts (CRTs). They offer an alternative to credit unions and other loan providers – the emphasis being on providing access to affordable finance. With support from the Housing Corporation, Barclays and Lloyds TSB banks, various housing associations and local authorities CFS established 13 organisations. Since the first opened for trading in Portsmouth in July 2000 these not-for-profit microfinance companies have made loans of over £8 million to over 6000 people. |
We draw on in-house and associate expertise in the fields of management, law, finance and social sciences to assist:
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Local communities wanting to establish local initiatives to combat financial exclusion
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Public and private sector organisations wanting to make the most out of their investment in community finance initiatives
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CDFIs wanting technical advice relating to the running of their organisation
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Local and national authorities wanting to support financial inclusion through appropriate legislation and initiatives
Specifically, we can conduct:
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Financial analysis and sensitivity analysis
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Quantitative data analysis (including statistical analysis of survey data)
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Qualitative data analysis (including analysis of data from in-dept interviews)
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Case study research
For examples of the type of research we are involved in, please visit Current and recent projects and Previous projects
CFS has also secured funding from the Department of Business, Enterprise and Regulatory Reform (formerly DTI) for the provision of Face 2 Face money advice with six partners; including Citizen Advice Bureau and money advice agencies.