UK Government Sets Out New Financial Inclusion Strategy Focused On Digital Access And Modern Tools

The UK government has released a new financial inclusion strategy that aims to expand access to essential financial services and improve financial resilience across the country. The document highlights the role that modern technologies such as open banking and artificial intelligence can play in breaking down long-standing barriers and helping more people participate fully in the financial system. Produced by HM Treasury with input from consumer groups and industry representatives, the fifty-two-page strategy marks what officials describe as the first step in a broader national effort to improve inclusion.

The strategy focuses on how digital solutions and updated policies can support people who struggle with savings, credit access, debt, or the basic ability to open and use a bank account. With financial life becoming increasingly digital, the government acknowledges that many people remain on the margins and need better support to navigate these changes.

Setting Priorities For A More Inclusive Financial System

The strategy outlines six major areas of focus: digital inclusion and access to banking, savings, insurance, access to credit, tackling problem debt, and improving financial education. Each area represents a building block in creating a financial environment where people can participate with confidence and stability.

Lucy Rigby, the economic secretary to the Treasury, writes in the foreword that access to financial services is a foundation for economic security, and that too many individuals still face obstacles in managing their money or planning for the future. The strategy aims to create a clearer path for people who want to become more financially secure but lack the tools or support to do so.

A New Role For Open Banking And Artificial Intelligence

One of the recurring themes of the strategy is the potential of open banking to give individuals better control over their money. Open banking allows people to view their financial information in real time and compare products more easily. The document states that this transparency can help people with thin or impaired credit histories access credit more effectively by presenting a fuller picture of their financial behaviour.

Artificial intelligence is also mentioned in the context of improving efficiency within public services. The strategy notes that AI-driven tools such as transcription and summarisation can help caseworkers manage large volumes of information during client calls, giving them more time to focus on providing meaningful support.

These emerging technologies are presented not as replacements for human guidance but as tools that can enhance service quality and broaden access.

Addressing The Persistent Challenge Of Being Unbanked

Despite advances in digital banking, the strategy acknowledges that about nine hundred thousand adults in the UK remain unbanked. According to the Financial Conduct Authority’s Financial Lives Survey, many of these individuals report that they choose not to have an account because they do not believe they need one. Others rely on household members or prepaid solutions.

But there is also a group of people who actively want an account yet cannot access one because they lack standard identification or face other barriers. To address this gap, the government plans to work with major banks on a pilot programme designed to simplify account opening for those without typical forms of ID. An Identity and Verification Working Group will be formed to guide this initiative and report regularly on progress.

The Importance Of Digital Banking For Everyday Life

The strategy highlights the transformative impact of digital banking services. For many people, mobile and online banking have become essential tools that allow them to check balances, manage payments, and receive support instantly. These tools have made financial management faster and more accessible, reducing the need for physical bank visits.

Open banking enhances this shift by allowing individuals to bring together information from multiple providers and view their finances more clearly. This can help people budget more effectively and access products that suit their needs, supporting better long term decision making.

Measuring Progress Over Time

The government plans to review implementation of the strategy in two years. HM Treasury will monitor several outcome based metrics, including the number of working age adults who have savings, the number of unbanked adults, the number of people in financial difficulty, and the proportion of individuals who need and use debt advice.

By focusing on these metrics, the government hopes to track whether the strategy is leading to meaningful improvements in financial resilience and inclusion.

A Step Toward A More Connected Financial Future

The UK’s financial inclusion strategy acknowledges the challenges created by an increasingly digital economy and sets out a roadmap to help more people benefit from modern financial tools. By combining technological innovation with targeted policy interventions, the government aims to build a system that supports individuals at every stage of their financial journey.