Description of the programme
The Financial Inclusion Task Force (FITF) identified the need for the Financial Inclusion Champions (FIC) initiative as part of the financial inclusion strategy. The initiative aimed to develop partnerships between local authorities, social landlords and other potential intermediaries to promote financial inclusion.
The Champions were located in local authority areas identified as needing to improve access to, and take-up of, financial services. Each Champion’s team was hosted by a local partner and worked towards three high-level goals: helping people manage their money day-to-day, planning for the future and coping with financial pressure, and dealing with financial stress.
Champions aimed to increase the demand and, where appropriate, the supply of basic financial services for financially excluded people. This included banking, saving, debt and money advice, affordable credit and home contents insurance services. Additionally, ‘Thematic Champions’ were tasked with enhancing financial inclusion in housing, banking and rural areas. This included work with national and umbrella organisations.
The study
In 2010 the FITF and HM Treasury (HMT) commissioned the evaluation of the FIC initiative. The evaluation explored the effectiveness of the model in developing financial inclusion services in the target areas. The evaluation aims were to:
- Understand the impact of the Champions’ role on partner organisations;
- Explore whether the programme benefited individuals at risk of financial inclusion, and to what extent;
- Consider outcomes in the context of regional and national economic and social conditions;
- Assess the value for money of the programme.
The evaluation applied a multi-method, case study-based methodology. Activities included a desk review, six case studies to reflect a variety of local areas, interviews and focus groups with Champions, qualitative research with service users, surveys of Champions and service providers, Social Network Analysis, analysis of management information and secondary data, and a value for money assessment.
Key findings
Overall the initiative was effective. Key findings included:
Champions
- Most Champions were highly experienced and committed individuals, drawn from sectors including banking, housing and financial services.
- Champions promoted financial inclusion awareness and worked to embed it in the local agenda through existing and new partnerships.
- Champions successfully engaged with partners and providers (e.g. credit unions, housing associations, debt advice services and local authorities) by developing strategies, building capacity and providing support.
- Champions influenced partners by providing training and disseminating information on financial inclusion, working collaboratively and coordinating local projects.
- Champions played a key role in developing and strengthening networks (25% of contacts between organisations in the case study areas were attributed to the Champions’ work).
- Nearly all providers (95%) stated the Champions’ advice was valuable.
- A common challenge for Champions was the limited understanding of providers and lack of priority placed on financial inclusion activities.
Beneficiaries
- The programme reached people at risk of financial exclusion and often made a notable difference to their lives.
- The programme included activities to promote affordable credit, increase savings opportunities, increase awareness and access to debt and money advice services, and expand the range of services provided by credit unions.
- Beneficiaries were generally satisfied with the services received.
- Debt and money advice services enhanced beneficiaries’ knowledge about financial services and entitlements, enabled some to increase their income by reducing utility bills or rent arrears, and improved their emotional wellbeing.
- Affordable credit services enhanced beneficiary knowledge about financial services and increased their control over personal finances. Some beneficiaries were deterred from using doorstep lenders or weekly payment stores (which charge high interest rates).
- Some beneficiaries were helped to access home contents insurance through their housing associations.
Reach
- More than 60,000 and up to 270,000 people had used services influenced by the Champions at the time of the evaluation. This number increased further by programme end (March 2011).
- The research suggests that a quarter of all financially excluded people in the target areas benefited from the activities.
Value for money
- The initiative received £7m over three years from DWP and additional funding from a range of other sources.
- A unit cost could not be determined for the programme, owing to the diversity of outcomes. Instead the study presents three proxy ‘units of influence’ which encompass a series of activities including promoting financial inclusion and networking.
- The findings indicate the initiative broadly represented value for money. The study suggests that the Champions improved financial inclusion service networks, and helped develop new services and strategies. However, the developmental nature of the Champions’ work meant it was not possible to determine the true value for money of the initiative. The investment in the delivery partnerships would need time to mature, to inform a comprehensive cost-benefit analysis.
Points to consider
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Methodological limitations: Assessing the quality of the financial inclusion services was beyond the scope of the evaluation.
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Generalisability/ transferability: The programme could potentially be replicated in other areas, given its scale and the apparent success of the approach.
