Financial Education Urgently Needed in Schools to Boost UK Economic Growth, Watchdog Warns

The head of the Financial Conduct Authority has recently highlighted the urgent need for better financial education in schools to drive UK economic growth.
Root Causes of Financial Exclusion Must Be Addressed
Nikhil Rathi, the chief executive of the Financial Conduct Authority, emphasized the importance of tackling the root causes of financial exclusion. In a recent report by the Education Select Committee of MPs, it was pointed out that effective financial education should start early, potentially even at the primary level. Mr. Rathi called for this to be included in the Government's curriculum review to ensure a solid foundation for financial literacy.
Collaboration for Financial Inclusion
Mr. Rathi also stressed the importance of collaboration between companies, regulators like the FCA, public sector bodies, and other stakeholders to enhance financial inclusion across the working-age population. With the surge in digital money-related products, there is a need to improve access to financial services for everyone. By focusing on digital financial inclusion, barriers to economic growth could be mitigated, leading to a positive impact on the overall economy.
Transforming the Financial Services Landscape
Mr. Rathi advocated for a fundamental change in mindset within the regulator, the Government, and financial services companies to enhance people's access to digital loans and savings products. This shift aims to provide individuals with the necessary financial tools to lead a fulfilling life.
Revamping Financial Advice and Guidance
Addressing the inefficiencies in the financial advice and guidance market, Mr. Rathi expressed the importance of collaborating with the Government to reform the system. The goal is to ensure that consumers receive timely and affordable assistance, especially concerning pension decisions, long-term savings, and investments.
Urgent Call for Businesses to Support Individuals in Debt
Abby Thomas, the chief executive of the Financial Ombudsman Service, highlighted the increasing complaints related to credit cards and irresponsible lending practices. Businesses were urged to provide support to individuals in debt, treating them fairly and empathetically. Despite existing rules and guidelines, there is a need for a more compassionate approach towards customer experiences in the financial sector. It is essential for financial businesses to prioritize customer support when addressing financial challenges.