Thistle Initiatives’ Post

Buy Now Pay Later schemes are now very common and can be used to finance everyday shopping. It's worrying to read that many consumers are ill-informed and make mistakes when it comes to making payments on time, with 32% of 18-34 year olds charged late payment fees according to The Centre for Financial Capability. https://lnkd.in/eQaZH4NB At MyBnk, we aim to equip young people with the knowledge they need to make informed decisions on their finances. Our Money Works and The Money House programmes for 16-25 year olds cover borrowing options and debt, including BNPL, so that young people can become aware of the risks associated with some financial products and how to use them responsibly. Find out more about Money Works and The Money House below ⬇ https://lnkd.in/esgJ2Kds https://lnkd.in/ehYV3W4 #BNPL #BuyNowPayLater #FinancialEducation #FinancialLiteracy #charity

How can alternative credit scoring transform the lives of 360,000 #Manchester residents? In partnership with the Manchester Chamber of Commerce, LexisNexis Risk Solutions UK & IRL - Financial Services and Businesses hosted a roundtable on financial exclusion. Our readout notes feature insights from local councils, debt charities, credit unions, academia, banks, and lending organisations. Key findings from our research include: 📊 8 in 10 financially excluded individuals in Manchester could qualify for more affordable credit. 💸 These residents currently face higher lending rates and service costs due to being deemed high risk. 📈 Manchester's financial exclusion rate is above the UK average of 12%.

A report by Finance Watch shows that despite EU legislation, vulnerable consumers in the bloc don't have easy access to a basic bank account. In the midst of a cost-of-living crisis, the non-profit organisation believes a review of the rules is more necessary than ever to make them work for all. https://lnkd.in/dmCSNAjG #finance #banking #costofliving #europe

💹 Last year, The Centre for Financial Capability found that 54% of 18–24-year-olds were expected to use Buy Now, Pay Later (BNPL) services within the next 12 months ➡ https://lnkd.in/ebhawQXw We discussed the rise of BNPL in our recent #GenerationDebt event; our data follows the trend, with 41% of our new customers in January 2024 having Buy Now, Pay Later debts. For many young people, Buy Now, Pay Later is their first experience with credit, which could potentially lead to their first serious debt problems. At the event, we reflected on the importance of people getting debt advice from professional debt advisors like us here at MoneyPlus, or debt charity MoneyHelper if they're struggling with managing their money so they’re able to access credit responsibly.

Last week we introduced the concept of EFT - quick and easy digital payments available for both personal and business banking, reducing the reliance on cash and cheques. This week we start to look at how you can use EFT on a daily basis to simplify your banking: 💸 Sending money to friends and family, locally or overseas 🔌 Payment of utility bills 🎟️ Payment for goods and services 🏢 Payment of salaries 🎗️ Making donations to your favourite charity Remember, EFT is: 🤳🏽 Convenient: payments can be initiated from your computer or mobile device in a matter of seconds 🏃🏾♀️ Fast: transfers typically take place within the same business day 🔐 Secure: be sure to take advantage of 2-Factor Verification where available 🤸🏾 Free: there is no charge to use the service within the ECCU Already using EFT as part of your day-to-day banking? 🙌🏾 Let us know how it works for you. Not yet started? 😮 Speak to your financial institution about your options today. #eft #digitalpayments #digitalbanking #onlinebanking #mobilebanking #skiptheline #nomorecash #nomorecheques

5 reasons why the fast rise of Buy Now, Pay Later needs close monitoring: 1. The number of UK adults using BNPL services has increased significantly, with 1 in 4 UK adults using them for Christmas shopping. 2. BNPL services are not regulated in the same way as credit cards, which means that consumers may not be aware of the risks involved. 3. BNPL services can encourage people to spend more than they can afford, which can lead to financial difficulties. 4. BNPL services can have a negative impact on credit scores, which can make it harder for people to access credit in the future. 5. BNPL services can be used to purchase items that are not essential, which can lead to unnecessary debt. #BuyNowPayLater #BNPL #ChristmasShopping #FinancialWellbeing #CreditScore

Reflections of a lifetime – 4 - Sort Code BOOKS – yes books. As most of you will know, a sort code is a six-digit number and identifies the bank and the branch where a bank account is held. Sort codes are the domestic bank codes used to route money transfers between financial institutions in the United Kingdom, and in the Republic of Ireland. They are six-digit hierarchical numerical addresses that specify clearing banks, clearing systems, regions, large financial institutions, groups of financial institutions and ultimately resolve to individual branches. Codes began to be used in the early 20th century to facilitate the manual processing of cheques. Six-digit "sorting codes" were introduced in a staggered process from 1957 as the banking industry moved towards automation. The national codes were retained but where a single digit was used to identify the bank a two-digit range was introduced. So, for example, Barclays codes went from starting with a 2 to 20, Midland from 4 to 40, etc. So once a year we received a sort code book which detailed all of the above so we could look up relevant sort codes and addresses when we needed to i.e. to return a cheque. How things have changed as this is largely automated by the advent of Sort code checker (bacs.co.uk) - More people than ever before are using automated payments from making an internet payment via online banking to paying a regular bill with a Direct Debit. Which is why it’s important automated payments can be made smoothly and efficiently. To enable that, Pay.UK has created a sort code checker – a one-stop-shop for the payments industry. Using data that is updated weekly, this online resource checks if the sort code a payment is being sent to is able to receive Faster Payments, Bacs Direct Credits and CHAPS payments.

I get this question very often! So here's a good summary of what it means to bank with a credit union - a financial institution with a purpose and one that truly places members (who are also customers of the banking services) at the top💛

Deposit growth is vital for financial institutions, and especially for credit unions, which are non-profit financial institutions that accept deposits and extend credit for their communities, in addition to providing other community-focused functions. #fintech #creditunions #banking #FIs

🌟 **Understanding the Difference: Bank vs. Community Credit Union** 🌟 Navigating the financial world can be a bit tricky, especially when choosing between a traditional bank and a community credit union. 🤝 Let’s break it down: **1. Ownership Structure:** - **Banks** are for-profit institutions, owned by shareholders. - **Community Credit Unions** are non-profit entities, owned by their members (each account holder). **2. Purpose and Mission:** - **Banks** aim to maximize profits for shareholders. - **Credit Unions** focus on serving their members, providing affordable financial solutions and reinvesting profits back into the community. **3. Rates and Fees:** - **Banks** might have higher fees and interest rates on loans but offer more varied services. - **Credit Unions** typically offer lower fees, higher interest on savings, and lower rates on loans. **4. Community Impact:** - **Banks** operate on a larger scale, often with national or international reach. - **Credit Unions** are community-focused, promoting local development and member welfare. **5. Accessibility and Technology:** - **Banks** usually provide extensive online and mobile banking tools, with widespread ATM networks. - **Credit Unions** may have less extensive technology but are rapidly improving in this area and often participate in shared ATM networks. Choosing the right financial institution depends on your personal needs and values. If you prioritize personalized service and community support, a credit union might be right for you. If you need a wide array of services and technological convenience, a bank could be the better choice. 🔑 **What's your preference? Let's discuss in the comments!** #FinancialLiteracy #Banking #CreditUnion #CommunityFinance #ChooseWisely