In the modern financial landscape, traditional banks face mounting challenges in engaging and retaining audiences, particularly those deemed as hard to reach. These include individuals from marginalised communities, those with poor or non-existent credit histories, or people who lack trust in formal banking systems. This disengagement not only limits growth for banks but also perpetuates financial exclusion, further widening the wealth gap.
The Problem: A Struggle to Connect
Statistics reveal that trust in traditional banking is at an all-time low. A 2022 global survey found that nearly 60% of people feel their banks don't act in their best interest, and in communities of colour, this figure rises even higher. Black and Brown communities, for example, are often disproportionately excluded from mainstream financial systems. In the UK, Black Africans are four times less likely, and Black Caribbeans 3.5 times less likely, to be approved for loans compared to their white counterparts—a barrier often tied to poor credit history or lack of financial literacy.
For banks, this presents a double-edged sword. On one hand, they’re missing out on a vast customer base that could drive deposits, lending, and revenue growth. On the other, they face reputational damage for failing to prioritise financial inclusion and adapt to the needs of underserved communities.
The Cost of Inaction
Failure to engage these communities comes at a high cost for banks:
- Missed Revenue Opportunities: A lack of creditworthy customers limits lending, reducing interest income.
- High Compliance Costs: Poor customer onboarding from underserved groups often leads to increased regulatory scrutiny and fines.
- Reputational Risk: Perceived exclusion of marginalised groups damages brand trust and market positioning.
- Stagnant Growth: Without reaching these markets, banks are unable to diversify their customer portfolio or tap into new revenue streams.
The 1Day Solution: Bridging the Gap
This is where 1Day steps in as a game-changer. Designed to empower individuals while supporting financial institutions, 1Day offers innovative solutions that help banks build trust and engage hard-to-reach audiences:
1. Financial Literacy for All: 1Day provides free financial literacy programmes, covering vital topics like understanding taxes, budgeting, savings, pensions, credit scores, and mortgages. By equipping individuals with knowledge, 1Day empowers them to make smarter financial decisions, increasing their creditworthiness and ability to access financial products.
2. Investment Training: Beyond basic literacy, 1Day offers advanced investment training in stocks, forex, real estate, and more. Delivered by industry experts, these programmes enable users to generate additional income streams, leading to more deposits and financial activity within banks.
3. A Unique B2B Partnership: 1Day doesn’t just serve individuals—it partners with banks and financial institutions to provide workshops and community-focused sessions. By working with 1Day, banks can:
- Build rapport with underserved communities through open and transparent engagement.
- Prequalify customers for lending, reducing the cost and risk of credit approvals.
- Increase deposits and improve their bottom line by guiding customers towards smarter financial behaviors.
4. A Path to Trust and Inclusion: Through its community-focused approach, 1Day acts as a trusted bridge between individuals and financial institutions. This relationship fosters trust, breaking down barriers that traditional banks struggle to overcome. The result? A win-win situation where individuals gain access to life-changing opportunities, and banks tap into untapped markets.
The Bigger Picture: Economic Growth
The impact of financial inclusion extends far beyond individual banks or customers. As more people become financially literate and creditworthy, the ripple effects contribute to national and global economic growth. Increased deposits and lending stimulate the economy, while a reduction in bad debt improves financial stability for everyone.
Why 1Day?
At 1Day, we understand the challenges banks face in engaging new audiences. We also recognise the transformative power of education and access. By combining these insights with innovative tools and partnerships, we’re not just helping individuals—we’re driving systemic change, making financial inclusion a reality for all.
