New data suggests banking model in revolution

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02 April 2014

Ffrees Family Finance, working with Kantar Media TGI Clickstream data, reveals 3m GB adults do not have a bank account

Unbanked Londoners account for 16% of the GB’s total population of Brits without a bank account

Britain’s banking system is called into question today as research suggests that three million adults across the nation do not have a bank account. This number is double previous estimates by HM Treasury’s Financial Inclusion Taskforce, and 4 times what it was before the financial crisis of 2008.

New current account provider, Ffrees Family Finance, working with Kantar Media TGI Clickstream data, has pointed out that 3,034,000 adults are currently living without a bank account across Great Britain. These households are excluded from having access to critical financial services and tools to help them manage their money and save up for the future.

The data shows that London, with 440,000 unbanked adults, accounts for 16% of all adults in GB without a bank account – more than the entire population of Liverpool.

Ffrees also confirmed that this is a nationwide issue. In Doncaster, for example, the 39,800 unbanked residents are double the capacity of the Championship football club, Doncaster Rovers’ Keepmoat Stadium.

Areas with high numbers of unbanked adults also include Durham with 36,900, Coventry with 28,100 and Manchester with 17,100.

Alex Letts, CEO, Ffrees Family Finance, commented: “The data suggests a flight from the traditional banks since 2008 among the mid to lower paid. Perhaps because retail banks’ current accounts are not really suitable for the majority of the population who want something more modern, and lower cost. Perhaps also it reflects a breakdown in trust between the consumers and the banks after the financial crisis and the well publicised mis-selling scandals. Either way, it reinforces the point that the time is ripe for a new model that works for families on average wages.

“We suggest this is the beginning of a consumer drift to alternative ways of accessing their cash. They are saying ’enough of the old’ and ’in with the new’.”

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