On the money.
There’s a ‘Great Divide’ between financial insiders and outsiders. So said Bank of England Chief Economist Andy Haldane* last week (pic FT.com). And so say us at Citizens Advice.
A lot needs to happen. Mr Haldane points to last year’s Bank Open Forum (attended by Citizens Advice Reigate & Banstead) showing a more open approach; people need better information such as the Open University’s online finance modules; and he says:
“Charities like Citizens Advice are also doing fantastic work in this area”.
Mr Haldane says people have lost trust in financial organisations. He regrets part of the problem is many people are terrible at maths. But he also agrees with our CA national chief executive who said at the Open Forum it’s as much about finance not understanding people as people not understanding finance.
To rebuild trust and understanding, banks, other financial institutions and regulators need to change how they communicate and the services they provide.
Banks have moved on how they deal with people in financial difficulty in response to revised regulation. Next month we report on our own CA research into how they’re getting on.
*The Great Divide, Speech, 18 May 2016
Andy Haldane was widely quoted over the weekend claiming “to be moderately financial literate” but unable “to make the remotest sense of pensions”. His comments give the measure of the man. Well-known for his frank assessments of society’s relationship with financial business, recent interventions include the importance of volunteering and the social and economic effects of current corporate dividend policy.
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