Financial watchdog calls for better education to combat exclusion

Nikhil Rathi, the chief executive of the Financial Conduct Authority, emphasized the need for improved financial education in UK schools during a speech at a Stepchange event. He highlighted that without addressing the root causes of financial exclusion, the UK economy faces significant challenges. Rathi advocated for early financial education, potentially starting at the primary level, and urged the government to include this in its curriculum review. He pointed out the importance of digital financial inclusion, especially as digital money-related products become more prevalent. Rathi called for a shift in mindset among regulators, the government, and financial services to enhance access to essential financial products like digital loans and savings. He also mentioned the success of auto-enrolled workplace savings schemes, which have gained popularity among employees. Rathi criticized the current state of financial advice and guidance in the UK, stating that it does not adequately serve consumers. He expressed hope for reforms that would provide timely and affordable assistance for consumers making financial decisions, particularly regarding pensions and long-term savings. At the same event, Abby Thomas, chief executive of the Financial Ombudsman Service, reported a 70% increase in complaints related to irresponsible lending. She urged businesses to treat customers with empathy and adhere to existing guidelines designed to support consumers in financial distress, highlighting the need for improved customer experiences in the financial sector.