Kept-out-opted-out

PPPRESSThe•POLICYKeptoutoroptedout?UnderstandingandcombatingfinancialexclusionElaineKempsonandClaireWhyleyFirstpublishedinGreatBritainin1999byThePolicyPress34Tyndall’sParkRoadBristolBS81PYUKTelno+44(0)1179546800Faxno+44(0)[e-mail]©ThePolicyPress1999InassociationwiththeJosephRowntreeFoundationISBN1861341598ElaineKElaineKElaineKElaineKElaineKempsonempsonempsonempsonempsonisDirectorandClairClairClairClairClaireeeeeWhWhWhWhWhyleyleyleyleyleyyyyyisaResearchFellowatthePersonalFinanceResearchCentre,UniversityofBristol.Allrightsreserved:nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmittedinanyformorbyanymeans,electronic,mechanical,photocopying,recordingorotherwisewithoutthepriorwrittenpermissionofthePublishers.TheJJJJJosephRoosephRoosephRoosephRoosephRowntrwntrwntrwntrwntreeFeeFeeFeeFeeFoundationoundationoundationoundationoundationhassupportedthisprojectaspartofitsprogrammeofresearchandinnovativedevelopmentprojects,whichithopeswillbeofvaluetopolicymakersandpractitioners.Thefactspresentedandviewsexpressedinthisreportare,however,thoseoftheauthorsandnotnecessarilythoseoftheFoundation.ThestatementsandopinionscontainedwithinthispublicationaresolelythoseoftheauthorsandcontributorsandnotofTheUniversityofBristolorThePolicyPress.TheUniversityofBristolandThePolicyPressdisclaimresponsibilityforanyinjurytopersonsorpropertyresultingfromanymaterialpublishedinthispublication.ThePolicyPressworkstocounterdiscriminationongroundsofgender,race,disability,ageandsexuality.CoverdesignbyQubeDesignAssociates,Bristol.Photographusedonfrontcoversuppliedbykindpermissionof:ahierarchy123Theprocessesoffinancialexclusion14Householdsthathaveneverusedfinancialservices14Disengagementfromfinancialservices17Individualswithinhouseholds19Engagementandre-engagementwithfinancialservices204Unmetneedsandtheconsequencesoffinancialexclusion22Day-to-daymoneymanagement22Longer-termfinancialsecurity26Medium-termfinancialsecurity27Purchasingconsumergoods285Meetingtheneedsoffinanciallyexcludedhouseholds30Providersoffinancialservices30Appropriateproductdesignanddelivery31Howwelldoexistingproductsmatchuptothesecriteria?336Summaryandpolicyimplications40Theprocessesofexclusion40Unmetneedsandtheconsequencesoffinancialexclusion41Meetingtheneeds42Thepolicyimplications44Movingforward47References49AppendixA:Regressionmodels51AppendixB:Researchmethods54Contents•ivThisresearchcouldnothavebeencompletedwithoutthehelpandsupportofagreatmanypeopleandwewouldliketothankthemfortheirhardwork.AtthePersonalFinanceResearchCentre(PFRC),UniversityofBristol,wewouldliketothankSharonCollardforherinvaluablecontributiontotheprojectand,inparticular,thefinalreport.Also,ProfessorNigelThriftandDrAndrewLeyshonforreadingandcommentingonworkingpapers.OurAdvisoryGroupofferedinvaluableadvicethroughoutthestudy.Thegroupcomprised:TonyBaker,DeputyDirectorGeneralAssociationofBritishInsurersKelvinBaynton,Formerly,HeadofConsumerAffairs,PersonalInvestmentAuthorityAdrianColes,DirectorGeneralBuildingSocietiesAssociationAcknowledgementsAmandaJordanSocialExclusionUnitSusanRice,HeadofBranchBankingBankofScotlandTimRoberson,ConsumerEconomistOfficeofFairTradingTheresaWilliams,PrincipalResearchOfficerDepartmentofSocialSecurityWethanktheOfficeofFairTradingforallowingusaccesstothei