Read: Level up finance to level up the country

Access to savings and credit is a key enabler of social mobility - that’s why it’s the focus of Levelling Up Goal 7. Levelling Up means that everyone has an equal opportunity to improve their lives. However, for many, we have to recognise that taking advantage of that opportunity, even with the necessary skills or knowledge, also requires financial resources. That can be affording the transport to get to an interview, buying the suit or car that a new role requires, or finding the capital to help get a business idea off the ground. If you’re unable to access capital or, even worse, are trapped in debt then you face significant barriers to success. Whatever your ambition or ability, it can feel like you are never going to get very far.

It means that the need for impartial, well-informed financial advice is crucial at every stage of our lives. Being financially literate, and having the confidence to obtain and understand the right advice about financial products, is essential for being able to get on in life. The other side of the coin – and one which we have seen exacerbated by the pandemic – is that financial exclusion leads to economic hardship and stress, with a negative impact on health, relationships and work.

The statistics tell their own story. Over 11 million people have less than £100 savings to fall back on and nine million often borrow to buy food or pay for bills. 22 million say they don’t know enough to plan for their retirement. The Government has acknowledged in its ten-year National Wellbeing Strategy published last year, that more needs to be done to tackle this financial exclusion and is working with regulators and the wider financial sector to make it easier for people to access the right financial services and products. The strategy set out five clear goals to support individuals throughout every stage of their financial lives.

It’s clear that those institutions that deal with and provide capital are at the heart of how we make progress on making access to responsible finance and savings available to everyone, removing that particular barrier to people getting on in life. 

Rising to the challenge are new banks which are changing the status quo. Aldermore, a multi-specialist lending bank, aims to open up access to those people and businesses who find it difficult to get finance and advice from the traditional financial sector. It has taken the issue of access to finance which is at the heart of Levelling Up Goal 7 and made it the business’s fundamental purpose.

Aldermore’s new CEO and former Co-Chair of the Social Mobility Commission, Steven Cooper, is steering the company to go even further. He has led Aldermore to join the Purpose Coalition, a group of the most committed purpose-led leaders in the country, which is setting new standards for reflecting true ESG priorities in business practice. The Purpose Coalition has developed the Purpose Goals architecture, known as the Levelling Up Goals in the UK, to allow organisations to articulate their purpose and measure their social impact. The 14 Goals provide a common framework around key life stages – from early years to fair recruitment and from good health and wellbeing to closing the digital divide. Aldermore is leading on Goal 7 Access to savings and credit, bringing its expertise, ambition and personal touch to help innovate and shape what levelling up really means for this issue.

Addressing the barriers to financial inclusion means looking at a range of solutions – financial education starting at school; better support from employers for their workforce’s financial wellbeing, especially those in their first jobs; better access to and communication about financial products. As with other aspects of levelling up, a place-based approach could also be employed, sitting alongside other work being delivered at a local level and reflecting the different needs of different areas.

Working with the Purpose Coalition, it has been clear that there are some sectors – ranging from utilities to insurance and hospitality, for example - where organisations have already thought carefully about what they are doing and how they can make a significant positive social impact. The process of using the Purpose Goals architecture has caused them to take a fresh look at raising their ambition levels and led them to work much more creatively, delivering more innovative solutions with a more diverse workforce. We are seeing different businesses take on different aspects of the levelling up challenge, focusing on those areas where they can really make a difference. Similarly, for Aldermore and the wider financial sector, this is a huge opportunity to bring that same ambition to Goal 7 on access to savings and credit, a crucial enabler of social mobility. It’s strong leadership that should be very much welcomed.

Rt Hon Justine Greening, Chair, Levelling Up Goals