Bridging the Financial Literacy Gap as High Street Banks Continue to Close

71% of Brits Demand Financial Education: How AI Could Answer the Call

• 12% of the public find the letters and email received from their bank ‘too confusing’ to understand
• 41% of the public believe that it is the responsibility of banks to educate people on money management and understanding personal finances

 
Zahra Hassan, banking expert and co-founder of Eligible, discusses the need to urgently the address the need for financial literacy across the UK

 
As nearly 400 towns across the UK have lost their local bank branches in the past two years, a financial literacy crisis looms. Recent research reveals that 71% of Brits believe mortgages should be taught in schools, highlighting a significant gap in financial education. Eligible, the UK’s first platform using AI to deliver personalised financial expertise, is stepping in to address this growing concern. Zahra Hassan, banking expert and co-founder of Eligible, asserts that as physical bank presence diminishes, digital communication needs to be airtight and tailored to individual needs.

According to Eligible’s research, 12% of the public are confused by the language used by their lender, while 41% of Brits believe it is the responsibility of banks to educate people on money management. This confusion is further exacerbated by the closure of bank branches, with Age UK stating that up to four million elderly people could be disenfranchised. The timing of these closures is particularly concerning as 58% of Brits report just staying afloat due to the squeeze on household budgets.

While some banks are adapting by funding banking hubs or converting branches into “work cafes,” Hassan argues that the real potential lies in correctly implementing AI-led technology. Eligible’s platform analyses the financial and behavioural data of customers to spot potential financial difficulties early on. This detection is then utilized to provide customers with bespoke financial advice, informing them about the measures they need to take to best support their situation in a digestible and timely format.
 
Zahra Hassan, co-founder of Eligible, comments:
 
“The emergence of banking deserts is a huge concern for consumers living outside of big metropolitan areas, particularly because we’re also seeing a surge in closures for suburban bank branches. With an already pervading lack of trust, taking away an institution’s physical presence is liable to make consumers more anxious. So, you have to replace it with something better. Accessibility has always been an issue in banking, so here’s an opportunity to completely reform consumer interaction and facilitate a new, more convenient way of relaying important information.
 
“When it comes to supporting banking in less densely populated areas of the UK, it’s incumbent on Westminster to make sure safety nets are in place for society’s most vulnerable. For those without access to modern, digital options or the capacity to use them, there must be alternatives to the local bank branch available – or at least a requirement for additional support and assistance. 

“What AI can do today is interact with customers and measure the level of understanding of their existing product before providing bespoke financial expertise. Based on this, we can start to form views on the likelihood that they could struggle to meet their payments. 

“AI can be used to detect how well people understand their financial product and use this data to spot vulnerable customers in order to better educate and support them.”