0 £0.00
This item was added to your basket

Dear visitor,
You are viewing 1 of your 2 free articles


We’ve made wider, important changes to our print and online content to enhance the value of exclusive, insightful, discerning content we create every day. Support valuable editorial content by becoming a member of our Credit Club - register for free or choose a paid plan.

Register now or Login

Government charity could help millions of financially squeezed adults

Nearly 13 million consumers could make more of their money if product ideas generated by a Cabinet Office charity are curated by the financial services sector. 


Amber-Ainsley   Pritchard

Share on LinkedInShare on Twitter
Amber-Ainsley   Pritchard
Share on LinkedInShare on Twitter

The Behavioural Insights Team (BIT), a social purpose company part-owned by the Cabinet Office, charity Nesta and its employees, works to make public services more cost-effective and easier for citizens to use.

 

It has partnered with the Money Advice Service (MAS) to work in a financial capability lab to develop new ways to tackle challenges faced by financially squeezed households. The BIT said almost one in four adults in the UK are financially squeezed (12.7 million individuals).

 

Working with more than 90 experts, the lab generated around 240 ideas to tackle everyday money challenges. The 17 strongest ideas were tested in the lab, these included:

 

Making it easy for people to bank savings on their weekly shop;

Using current account transaction data to offer timely help and support;
Helping people to block unsolicited high-cost credit offers.

 

The BIT said the tests used a mixture of methods including its online experimentation platform Predictiv, as well as consumer focus groups and interviews led by Ipsos MORI.

 

Sarah Porretta, UK financial capability director at the MAS, said: “We all have a complex relationship with money. Behavioural science tries to make sense of how we all make decisions, so that we can predict behaviours and ultimately help people manage their money better.

 

“The great thing about the lab ideas is that they can be taken forward with different partners in the context of their own products and services. I am delighted to say that we are already exploring one idea with a major UK bank and are keen to talk to other potential partners to move these ideas forward.”

 

Elisabeth Costa, director at the BIT, added: “Too many households struggle with their finances. The reality of living without a financial safety net means that an unexpected bill or repair could tip people into problem debt. This has broader implications for wellbeing. That’s why it’s so important we bring fresh and evidence-based thinking to the UK’s most pressing money management challenges.”

 

LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

YOU MIGHT ALSO LIKE

Half of Brits feel they cannot ask credit card provider for help

More than half of people feel there is a stigma attached to asking their credit card provider for help if they fall into debt, according to research

What role for humans in the future of collections?

As artificial intelligence (AI) matures and becomes more commonplace, panellists at Digital Banking Club for Collections Live Debate considered how roles in collections will change

Axa to be reunited with lost Credit Award

Amid the festivities of this year’s Credit Awards, sponsored by Lowell, Axa Insurance believed it had had the misfortune to lose its award for Consumer Credit and Customer Service Team of the Year

84 MPs back calls for FCA to tackle overdraft costs

A cross-party group of 84 MPs is calling on the Financial Conduct Authority (FCA) to restrict unarranged overdraft fees to the same level as arranged overdrafts

The CS Interview

Anne Boden on Starling Bank's growth plans and gender diversity

Anne Boden on Starling Bank's growth plans and gender diversity

Features

How much is a modern debt purchaser worth?

How much is a modern debt purchaser worth?

Opinion

FCA aims on affordable lending nigh on impossible

FCA aims on affordable lending nigh on impossible

Credit 500 - 2018/2019

The new Credit 500 - an index of influence in commercial and consumer credit - has been unveiled
Share on LinkedInShare on Twitter

The new Credit 500 - an index of influence in commercial and consumer credit - has been unveiled

Credit Strategy
LinkedIn page

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace.
@ Copyright Shard Media Group