Definitions
We are providing here definitions of what we mean by certain terms used elsewhere in the Financial Inclusion funding section of this website:
Financial exclusion:
Financial exclusion refers to the structural conditions and processes by which some people are unable to access and use financial services that are suited to their needs and circumstances.
Financial inclusion:
The change we are working towards with our main giving programme is comprehensive financial inclusion, which is the opposite of financial exclusion. The Foundation wishes to achieve this by creating conditions throughout the UK for improved access to appropriate financial services for those who are currently excluded, particularly those on low incomes or otherwise vulnerable to the failure of the market to respond to their needs.
Financial capability:
This is a broad concept, encompassing people’s knowledge and skills to understand their own financial circumstances, along with the motivation to take action. Financially capable consumers plan ahead, find and use information, know when to seek advice and can understand and act on this advice, leading to greater participation in the financial services market.
Some agencies, such as Toynbee Hall (which runs Transact, the national forum for financial inclusion), view financial capability as part of financial inclusion, while others view the two as separate - but related - areas.
Note that the Foundation's Trustees have made financial capability a low priority for funding at the present time, given the wide range of developments in this area at present.
Strategic:
The Foundation will only consider applications for work that will make a strategic contribution to the overall outcome of financial inclusion in the UK. We define 'strategic' as work that has the potential to have impact beyond the immediate users of the service or research.
For instance, if the project is a leadership programme for certain credit union managers then there must be clear, feasible plans for rolling it out to all credit union managers. Or if, for example, the proposal is for funding for an evaluation of a service innovation, then we would expect some thinking to have been done about how the findings might influence wider practice in the field.
