We define financial inclusion as individuals having access to appropriate financial products and services, including having the skills, knowledge and understanding to use them.
Financial exclusion can be both a symptom of poverty and a cause of poverty. People on low incomes may have difficulty opening bank accounts, getting low cost loans or building up savings. Those who do not have bank accounts cannot use cheaper payment options, such as direct debit, and have to use more expensive forms of credit, such as doorstep lenders. This increases their risk of falling into debt and poverty.
The Scottish Government's approach to tackling financial exclusion is set out in the Financial Inclusion Action Plan. To encourage sharing of knowledge and networking, the Scottish Government held one day conferences (the Financial Inclusion Event) in 2005, 2006, 2007and there was a final information sharing event in 2008.