New data suggests banking model in revolution

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03 April 2014 

Ffrees Family Finance, working with Kantar Media TGI Clickstream data, reveals at least 125,200 adult residents in Yorkshire do not have a bank account - 15,100 of which are from Sheffield alone

Britain’s banking system is called into question today as research suggests that at least 125,000 adults living in Yorkshire do not have a bank account.

Working with Kantar Media TGI Clickstream data1, new current account provider, Ffrees Family Finance, discovered Yorkshire has at least 125,000 adults without a bank account, after analysing towns such as Sheffield, Wakefield, Rotherham, Leeds and Doncaster. 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 15,000 of those unbanked Yorkshire residents are from Ffrees’ hometown of Sheffield. Additionally, the 39,800 unbanked residents in Doncaster are double the capacity of the Championship football club, Doncaster Rovers’ Keepmoat Stadium.

Ffrees also confirmed that this is a nationwide issue with 3,034,000 adults currently living without a bank account across Britain. The data shows that London, with 440,000 unbanked adults, accounts for 16% of all adults in Britain without a bank account – more than the entire population of Liverpool. And 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.

“To see tens of thousands of people from Yorkshire living without a bank account is disheartening to say the least. 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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