In our latest video our Credit and Consumer Markets Lead Niall Alexander explores how access to credit has changed, and why the shape of the credit market is just as important as its size.

While talk of the cost of living crisis may have quietened down in the media, it is still a daily reality for millions of people across the country for whom there’s more month than money.

We know that credit is not always the right answer for people. It’s certainly not a panacea. However, in the right circumstances a small sum of money, responsibly lent, can be a lifeline for people in financially vulnerable circumstances across the country.

Regulatory reforms in the UK high cost credit, credit cards and overdraft markets have resulted in significantly improved outcomes for customers. Alongside this there have also been substantial numbers of lower income households unable to access credit.

We welcome consumer protections and good regulation, and we also believe in the importance of access. Which is why we think the shape of the credit market is as important as its size. It’s a balance that’s not straightforward to achieve and requires the skills of the whole financial services sector.

We continue to work to scale up community finance, credit unions and CDFIs, and we know that these organisations help in getting small sums of money (below £1,000) to people who need it. People who are often in financially vulnerable circumstances, in rented accommodation, on lower incomes and more likely with dependents.

There is a role for banks and regulators in all of this too. And while there are no easy answers to these complex issues, we’ve seen banks in the USA offer small dollar loans to customers with thin and poor files – and results look encouraging.

We’ll continue to explore this issue and we’re always keen to work with others who can help us get to the right solutions.