We welcome the publication of the Government’s Financial Inclusion Strategy today. Financial exclusion is a huge issue in the UK and sustained collective and collaborative action is needed across the financial services industry to tackle it.

We will step up to play a key role in delivering on the Strategy, including through:

• Piloting a small sum loan product with mainstream banks, so more people can access affordable, responsible credit when they need it
• Working with the FCA and industry to remove barriers and increase the uptake of contents insurance for social renters
• Addressing gaps in income protection insurance for underserved groups of people, including the self-employed
• Supporting the credit union sector to achieve transformational growth through regional collaboration and technology investment, with a new £30m fund
• Funding financial education and capability for people in financially vulnerable circumstances through an initial £15m investment

The Financial Inclusion Strategy is an important step forward in the fight against financial exclusion and we are committed to working with government and industry to take these proposals forward.

We’re really pleased to see the inclusion of a small sum lending pilot, and wider recognition of the important role mainstream finance providers have in scaling affordable credit.

With over 20m people in financially vulnerable circumstances in the UK, it’s important that the Strategy leads to real change. We hope this is a starting point for the financial services industry to deliver solutions that match the size of these problems. The Strategy sets out a framework to measure and scrutinise this progress.

It’s important that we address the six key elements to financial inclusion: problem debt, a lack of access, lack of resilience, low financial capability, the poverty premium, and the need to maximise people’s income.

We would like to see mainstream banks commit to serving more excluded customers to help fill the £2bn gap in the UK credit market, through scaling up successful pilots, contributing funding to grow community finance providers who are serving excluded customers well and connecting customers to alternative lenders and unclaimed benefits.

Far too many people still cannot access affordable and appropriate insurance products, which needs concerted action from the insurance industry to address. There is also a huge opportunity to build on the success of pensions auto enrolment by delivering opt-out payroll saving schemes, so more people can build a savings buffer and increase their financial resilience.

Nearly a third of adults in the UK live in financially vulnerable circumstances. This limits their opportunities to build their resilience, transact their lives fairly and contribute to society. If we solve financial inclusion there is at least a £6.4bn a year growth opportunity on the table. The chance to turbocharge financial inclusion is too big to miss.