Financial Exclusion in the UK: Evidence on Ethnicity

Promoting access to suitable and affordable financial products and tackling financial exclusion has become a prominent feature of the political agenda in the UK, as the second annual 'Financial Inclusion Report' was published in November 2020 by the Department for Work and Pensions. This study provides an empirical analysis on financial exclusion and its association with ethnicity, using data from the UK's Family Resources Survey. The analysis offers important new evidence on the significance of ethnicity, and it further identifies gender, family type and income as other key factors associated with access to financial products. The findings provide a valuable, new empirical dimension to our current understanding of financial exclusion and its links to ethnicity, inform the relevant political debate, and offer key evidence in support of policy initiatives targeted at enhancing financial security and well-being.