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3 Causes of Financial Exclusion in the UK

Every year in the UK, people find themselves being financially excluded. This means that they are unable to access anything more than basic bank accounts at best, leaving them in a situation…

Left with no access to financial services

Every year in the UK, people find themselves being financially excluded. This means that they are unable to access anything more than basic bank accounts at best, leaving them in a situation where they are not welcome to use the wide range of financial services that are open to everyone else.

Interestingly, the Financial Inclusion Committee has shared that over 1.5 million adults in the UK cannot access banking facilities which means they are unable to receive payments into an account, pay bills out of an account or put savings away for the future. However, many of us are left wondering what causes someone to be financially excluded, and so we have listed a few reasons of being financially excluded below.

1: Debt – Past Or Present

If you have a past unpaid debt or any current debt that is not being managed effectively, then you are a prime candidate for financial exclusion.

The majority of people who are working to manage their debt through an Individual Voluntary Arrangement (IVA) or Debt Management Plan (DMP) or have declared bankruptcy are automatically financially excluded as they are not seen to have the ability to manage a range of financial products. In reality, financial exclusion often exacerbates these problems rather than helping them.

2: Being Too Cautious With Money

If you are too good with money, then you may also find yourself financially excluded. While this may sound like a joke, it is a very real problem for those people who pay their bills in full every month. The reason for this is that if you avoid any interest payments because you pay everything off, then you are not making money for financial services and so you are of little use to them.

To avoid this type of financial exclusion, you are better off paying in instalments so that you can show a good payment record as well as giving credit companies the chance to make a bit of money in return.

3: Errors Or Issues On Your Credit File

Another common reason for financial exclusion involves having an incorrect or incomplete credit record. If there is missing information, then you may be deemed to be too high a risk to provide financial services to. Check that your addresses are all accurate with the right dates and also ensure that if you have had any name changes, then these are also recorded.

In terms of issues on your credit file, you may find that you are linked to another person through a joint debt or account and that person’s poor credit history is impacting upon yours. It is also important to check that your account balances and payments are all up to date and correct so that the financial picture given of you is accurate.

Credit Rating Scale - Poor, Uncertain, Fair, Good, Excellent


If you have suffered at the hands of financial exclusion, then you are not alone and can get advice and support to work towards financial inclusion. There are many new and emerging banks and great alternatives to UK banks that will be willing to consider you as an applicant. You can also seek advice from charities and agencies that work specifically to help people who have been financially excluded.

Suits Me®

At Suits Me® we aim to be the UKs most inclusive solution and financial services provider, helping to eliminate financial exclusion and connecting everyone to a banking-like facility to safely and securely manage their money and finances.

Suits Me® Mobile Banking App and Debit Card

Who Can Open a Suits Me® Account?

As we believe that payment features should be available for everyone, anyone who is currently residing in the UK can open a Suits Me® account providing they are;

  • 18 or over when applying
  • Have one form of ID (Driving license (UK nationals), Passport or National ID card)

Opening a Suits Me® personal account is quick and easy via our online application form, once complete, your account will be open within 3 minutes. No credit checks or proof of address are required when opening a Suits Me® account.

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