Improving access to affordable financial services for all
The Fund’s holdings in the financial sector are focused on improving the accessibility and affordability of financial services for all, including loans, savings accounts and mortgages for first-time borrowers.
People from Black, Asian and minority ethnic communities currently face greater financial exclusion and inequalities. For instance, Black African, Black Caribbean and Bangladeshi groups are 4 times, 3.5 times and 2.5 times more likely to be denied a loan respectively compared to White groups26.
Access to other financial services, such as insurance are also important for financial resilience. Figures show that renters were much less likely to have home contents insurance than owner-occupiers (31% compared with 88%). Low-income and social-rented households are more exposed to risks: social-rented households are twice as likely to be burgled as owner-occupied households27.
The Fund’s investment activities in the financial inclusion outcome grouping focus on bonds from banks and building societies as well as insurance companies. In the reporting year, the Fund added the Social Bond from Yorkshire Building Society (download the report to see case study), as well as a general corporate purpose bond from Nationwide Building Society. Most of the bonds held by the Fund are general corporate purpose bonds and have been rated with Low or Medium social impact performance.
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Read in-depth engagement case studies and learn how portfolio holdings are making the greatest contribution to four sustainability themes including ‘Sustainable cities’, ‘Decent work and economic growth’, ‘Affordable and clean energy’ and ‘Good health and wellbeing’. Â
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