Financial inclusion

Introduction

Financial inclusion concerns the ability of individuals, households and small businesses to access useful, affordable financial products and services – bank accounts, payments, savings, credit, insurance and financial advice – delivered responsibly. In a high‑cost island economy with a large migrant workforce, a significant financial services sector, and a growing digital infrastructure, financial inclusion is an important issue.

Executive summary

The way people access financial services has transformed, moving from face-to-face and paper-based interactions to digital platforms. For example, cash payments dropped from 58% of the total in 2009 to just 9% in 2024.

Most people have benefited from technological improvements. But people who, for whatever reason, have no access to the Internet are increasingly disadvantaged. The financial inclusion problem is most prevalent among low‑income households facing high living costs, migrant workers without established credit histories, victims of domestic abuse and people with poor digital access or skills.

Opening a bank account in Jersey can be difficult due to strict AML/KYC requirements and barriers for migrant workers.

While cash availability is considered adequate, businesses’ acceptance of cash has become a policy concern. In 2025, the State Assembly agreed that people should have the right to pay with cash. 

Obtaining a credit card can be difficult because providers cannot easily access electoral rolls, leading to delays or outright denials.

Specific policy issues include –

• Is access to cash a problem?
• To what extent is opening a bank account a problem and what can be done about it?  
• For people who prefer to use cash, is expanded availability of payment cards an option? 
• Is requiring businesses to accept cash payments the right approach?
• Is the issue of obtaining credit cards being satisfactorily dealt with?
• Are there issues about obtaining insurance?
• Would it be sensible to widen the scope of the policy work on acceptance of cash to cover the whole issue of financial inclusion?
• How can access to basic financial advice be improved?

Financial inclusion also needs to be considered in the wider context of digital exclusion. Digitally excluded people are also financially excluded.  Jersey does not have a digital inclusion strategy. In London, the Oyster card was a catalyst for people moving to digital means of payment. Jersey is making progress on digitising healthcare, and it may be that this can have the same effect. Once people are confident with accessing one service digitally, they are likely to use other services digitally.

How access to financial services is changing

The way that people access financial services has changed dramatically in recent years in line with the way that people access goods and services generally. There has been a move from face-to-face transactions and paper communication to using digital means to do business. People are now able to access a vast amount of information online including price comparison websites, buy services electronically and have all information readily available in digital form either on their own computers or on the websites of businesses they deal with.

75% of motor insurance policies are now bought online and price comparison websites are used by around one third of all people buying financial services.

The way that people pay for goods and services has changed dramatically. In 2009, 58% of all payments were made in cash. That proportion has since fallen to 9% in 2024, and UK finance is forecasting a further reduction to 4% in 2034. Usage of cheques has fallen from 1,213 million payments in 2009 to just 91 million in 2024. Payments are now predominantly made by card and increasingly by contactless. In 2024, 39% of all payments were contactless.  However, cash is still the first choice for about 15% of people.

The highest paying savings accounts are available almost entirely online, and there are now successful banking businesses, such as Revolut and Monzo, that operate only online.

Winners and losers

Most people have benefited from improvements in technology. They facilitate shopping around for the best product and make acquiring the product relatively easy. Similarly, contactless payments are rapidly becoming the norm and, for most people, are a significant improvement over using cash. No one has been forced to use Apple Pay or Google Pay, but rather, these services have rapidly proved popular with the public.

But with all such developments, not everyone benefits. People who, for whatever reason, have no access to the Internet are increasingly disadvantaged. They cannot shop around as easily as others, and they cannot access many products, particularly the best savings products. They are also not able to purchase physical goods through Amazon and other retailers, significantly limiting their choice.

There is a general acceptance among policy makers that while recognising the benefits of moving to a digital way of doing things, people must not be left behind.

This is closely connected with the issue of financial resilience. High housing and living costs reduce households’ ability to save. Many families have little buffer against unexpected expenses, increasing vulnerability to debt. The 2025 Jersey Opinions and Lifestyle Survey showed that 30% of households found it difficult to cope financially; the proportion ranged from 69% of single-parent households to 17% of pensioner households. 33% of households were unable to afford an unexpected but necessary expense of £1,400, with the proportion ranging from 22% in rural parishes to 45% in St Helier.

The financial inclusion problem is most prevalent among –

• Low‑income households facing high living costs.
• Migrant workers without established credit histories.
• People without standard identification or fixed addresses.
• Individuals with poor digital access or skills.
• Victims of domestic abuse.

Once people are financial excluded it can be difficult for them to get back into the banking system.

It is often the case that the most vulnerable people are least able to use the cheapest financial products.

Access to banking

Opening a bank account in Jersey can be difficult due to:

• Strict AML/KYC requirements.
• Limited acceptance of alternative forms of ID.
• Slow onboarding processes.
• Barriers for migrant workers, seasonal staff, and small charities.

Community Savings has commented –

Community Savings is calling attention to the growing issue of financial exclusion in Jersey, where many individuals remain without access to basic banking services, a situation that can severely limit independence, stability and opportunity.

While banking is often taken for granted, a significant number of islanders are unable to open or maintain a mainstream bank account. This may be due to changing life circumstances such as redundancy, ill health, bereavement, relationship breakdown, homelessness or previous financial difficulties. Without access to basic financial services, people can struggle to receive income, pay bills, save money or plan for the future.

This can lead to reliance on cash, informal arrangements, or expensive alternative services.

Cash availability and acceptance

The issue of cash availability and acceptance has been a significant public policy concern in the UK and Jersey. In the UK, LINK, which operates the mechanism that ensures that all payment cards work in all automated teller machines (ATMs), has run a financial inclusion programme, which has ensured that the availability of cash from ATMs and post offices is much the same now as it was in 2018. This has been achieved by subsidising the continuation or installation of cash dispensers in areas where they would not otherwise be viable. LINK has operated a community request an ATM programme for some years, which has led to over 100 new ATMs being installed. There have been no requests in Jersey. Currently, there are about 36 ATMs in Jersey, all of which are free to use.

The public policy issue now is cash acceptance rather than cash availability. Businesses are generally free to decide how they wish to accept payments and risk losing business if they restrict the ways people can pay. For many years, it was not uncommon for businesses to accept cash only. Few businesses now adopt this policy, simply because they would lose customers. Many businesses are now entirely cashless. The primary drivers are fraud and security concerns and the cost of handling cash. However, some retailers that are “card only” in practice will also accept cash in some circumstances, for example from long-standing customers.

Businesses selling goods and services remotely cannot offer payment by cash.

Link has recently published a report, Keeping choice alive, analysing cash acceptance.  Its conclusions as to why businesses move to card-only are set out below –

Fraud prevention plays an important role in why firms go cashless. While the volume of counterfeit currency is extremely small, it remains perceived as a real threat, and for small businesses, accepting a fake note can mean an immediate loss. Unlike card payments, which offer some protection against fraud, cash transactions place the burden entirely on the retailer. For businesses already operating on thin margins, this risk can be decisive.

Security concerns are another powerful driver for retailers going cashless. Prominent campaigns from supermarkets and convenience stores have highlighted the significant risk and widespread issues from shoplifting and violence against shopworkers. Holding cash on-site makes businesses a target for theft, and for many owners, the risk of robbery is a constant worry. Staff safety is also a consideration, particularly for late-opening venues such as pubs and restaurants. Reducing or eliminating cash can feel like a way to protect employees and reduce vulnerability.

Handling cash is not free, just as card payments are not. Banking fees for deposits, insurance premiums, and the time required to manage cash all add up. For smaller retailers and hospitality venues, these costs can feel overwhelming. Every pound spent on processing payments is a pound not invested in stock, staff, or improving the customer experience.

Our research highlights the real cost challenges retailers face when accepting cash: 46% of retailers report paying over £50 per month just to handle cash deposits, with 15% paying more than £200 per month. For businesses operating on tight margins, this may be a significant expense.

The problem is not just cost; it is access to deposit facilities. 88% of SMEs report frequent issues when depositing cash. Local branch closures, limited opening hours, and high demand for remaining facilities make cash handling difficult. The closure of local bank branches is the single biggest challenge, with 65% of businesses saying they prefer to deposit cash at their local branch. Yet those branches are closing.

On 4 February 2025 the States Assembly Economics and International Affairs Scrutiny Panel published Acceptance of cash payments review. This detailed report had 38 key findings and 13 recommendations. One recommendation referred specifically to financial inclusion –

KEY FINDING 24: There is evidence that the demise of cash is having a detrimental impact to the economic inclusion of some vulnerable sections of the community. For many, cash acceptance was heavily linked to maintaining social connection, interaction and inclusivity. Physical cash was also seen by many as having value past its financial amount: being tangible, traditional and a novelty for tourists. Furthermore, payment method acceptance may have wider impacts on certain elements of purchases, such as tips or service provision, as well as car-boot sales, honesty boxes and charitable donations.

One of the recommendations was that ministers should “form a clear policy and subsequent strategy on Government of Jersey actions regarding the acceptance of cash payments and digital inclusion”. Other recommendations included –

• There should be a presumption that cash payments are accepted for all public services, including parking and transport.
• The Minister for Sustainable Economic Development should, by 30 April 2025, issue interim guidance to businesses indicating that they should accept a cash payment where it is the customer’s only way of paying. 
• There should be no differential pricing based on payment method in the provision of public services, including third party providers such as transport services and arm’s length organisations.
• The Minister for Sustainable Economic Development should, by 30 April 2025, issue interim guidance to businesses indicating that differential pricing based on payment method should not take place. 

The Council of Ministers rejected the specific recommendation to form a clear policy on cash acceptance and digital payments and declined to issue the guidance to businesses.

Subsequently that States Assembly agreed to a proposition –

that people in Jersey should have a right and expectation to be able to pay for in-person purchases of goods and services using cash and to request the Council of Ministers –

• to take the necessary steps to ensure that from January 2028, businesses selling in-person goods and services must accept cash, unless they are exempt according to a list of reasonable exemptions to be developed by the Council in consultation with stakeholders; and
• to bring forward a policy paperon the long-term plans for access to cash and cash usage in the Island, including examination of the fees banks charge for depositing or withdrawing cash, to be presented to the States Assembly by March 2027.

Credit car​ds

A particular problem in Jersey has been the difficulty that people have in obtaining credit cards. This is primarily because credit card providers face challenges in assessing the creditworthiness of Jersey residents mainly because they are unable to access electoral rolls. As a result, credit checks for Jersey residents take longer and, in some cases, may mean people cannot obtain credit cards at all.

The Jersey government has been addressing the issue initially through an amendment to the Register of Names and Addresses (Jersey) Law 2012 which would enable data to be shared with the credit reference agencies used by credit card providers. However, this proved insufficient because of a technical issue related to sharing information for law enforcement purposes. This is now being addressed by a further legislative change.

Community Savings

Community Savings is the institution in Jersey that most directly promotes financial inclusion. It is a Jersey-incorporated company limited by guarantee and a registered charity. It operates as a not-for-profit self-help savings and loan co-operative, modelled on UK credit unions, to promote financial inclusion. It is supervised by the Jersey Financial Services Commission. It has ten part-time paid staff, 12 volunteers and an annual turnover of around £450,000. Its website states that –

Community Savings is a charity that helps those who are experiencing financial difficulties, for whatever reason. Our aim is to promote financial inclusion in Jersey by providing free and confidential services, guidance and practical assistance to those most in need.

Its website gives details of the services it offers –

Basic account. “If you have a poor credit rating or a bank has turned you down for other reasons, you will still be able to apply for a basic account with us. You will be able to deposit funds into your account via bank transfer or cheque, make payments, and set up standing orders from your account. We do not accept cash, but you can also apply for a pre-paid card with a third-party card provider, which can be used for ATM cash withdrawals and to pay for goods and services, including online, subject to card limits. Alternatively, you can collect a cheque to be cashed at Jersey Post. You will not however, receive a cheque book, credit card or be offered an overdraft.”

Savings account.  Members are expected to save a minimum of £5 a month.

Emergency grants and interest free loans.

Budgeting advice.

Community Savings is supported by local banks, which recognise that it provides services which they cannot.

Policy issues

The starting point for addressing the issue of financial inclusion should be an understanding of the key issues.

An important principle is the balance in addressing the issue between seeking to change the behaviour of businesses and seeking to change the behaviour of consumers. This can be put rather more starkly as whether the balance of the strategyshould be to seek to preserve long-established means of doing business or rather whether to help people move to modern ways of doing business.

Specific issues include –

• Is access to cash a problem? At first sight, the number of cash dispensers seems adequate for the island.
• To what extent is opening a bank account a problem, and what can be done about it?  What groups of people are particularly affected?
• There is a continuum of payment methods from cash to electronic transfers. People do not need access to the Internet to use credit, debit, or other payment cards. For people who prefer to use cash, is expanded availability of payment cards an option? 
• Is requiring businesses to accept cash payments the right approach?
• Is the issue of obtaining credit cards being satisfactorily dealt with?
• Are there issues about obtaining insurance?
• The Government has to bring forward a policy paperon the long-term plans for access to cash and cash usage in the Island by March 2027. Would it be sensible to widen the scope to cover the whole issue of financial inclusion?
• How can access to basic financial advice be improved?

Financial inclusion also needs to be considered in the wider context of digital exclusion.  Digitally excluded people are also financially excluded.  Jersey does not have a digital inclusion strategy. In London, the Oyster card was a catalyst for people moving to digital means of payment. Jersey is making progress on digitising healthcare, and it may be that this can have the same effect. Once people are confident with accessing one service digitally, they are likely to use other services digitally.