Jun 10, 2015
A new report commissioned by the JPMorgan Chase Foundation and carried out by the Centre for Social Justice (CSJ), found that unsecured debt on credit cards, overdrafts and payday loans increased by £10 billion to more than £170 billion in the UK — the highest level in four years. Fifteen million people, almost a quarter of the population, are borrowing to cover monthly bills.
Highlighting the social and emotional cost of household debt, the report calls for a new generation of “socially responsible” financial services to provide low-income homes with an alternative to “dodgy lenders.”
The Future Finance: A new approach to financial capability report says that investment and innovation are needed to create a better range of Alternative Financial Institutions (AFIs) to help people bridge income gaps, build savings and improve their financial skills.
Among its recommendations is the creation of a new body to assess the business models of AFIs and connect them with social and commercial investors, using funding from corporate CSR programs and charitable organizations to provide a guarantee for investors.