An analysis of influences on total financial exclusion

A significant number of individuals in the UK use no financial services, whatsoever be the mainstream financial service providers. Such a situation is characterised as ‘total financial exclusion’ and is presently a matter of debate among government, policymakers, consumer groups and industry participants, not least because financial exclusion is seen as closely linked to wider social exclusion. Most previous studies of financial exclusion in the UK have focused upon particular product categories, such as bank accounts or insurance, rather than attempting to isolate important influences on total financial exclusion. This study investigates influences on total financial exclusion using a sample of over 15,000 UK households. Results show that the most important influences on total financial exclusion are educational attainment and the type of housing tenure of the household concerned. Other important influences include household income, employment status and age. Results also show that gender is not significant in explaining total financial exclusion, and regional and ethnic variations are less pronounced. Implications are discussed.