Cost of living: Charity steps up for the financially excluded

Monday 10 October 2022

Guernsey Community Savings (GCS) is increasing its efforts to reach out to people who have been financially excluded on the dawn of its two-year anniversary.

Since 2020 GCS has provided unique support to more than 100 people who didn’t have a bank account. The charity ensures that each client has an easy-to-use online account, a debit card, and a means of building up savings.

It also offers financial education, including running six-week programmes with the education department at Guernsey Prison.

A new ‘pop in for coffee, cake and a chat’ session will run on the second Thursday of every month from 10:00 to 13:00, starting this week, on 13 October. Team members will be available for existing and potential clients alongside volunteers and funders.

Sessions will also be run at local groups such as Bright Beginnings, GROW and the Kindred Family Centre - and a fund-raising quiz will be held at KGV on October 20.

Referrals to GCS usually come from Guernsey Prison, the Office for Employment & Social Security, Guernsey Employment Trust, Citizens Advice and Bright Beginnings, but those who self-refer are also supported.

GCS Managing Director Jane Kerins said the charity is needed now more than ever: “More and more local people are experiencing difficulties opening a bank account or are finding that the bank has closed their account because of debt problems, a poor credit history or simply because of a pattern of transactions that isn’t acceptable to the bank’s algorithm.

“We are also stepping up our efforts to raise funds to ensure our vital work can continue, including grant applications, fund-raising events and appealing directly to the public to contribute.”

Pictured: The charity help individuals to access digital banking services if they are unable or prohibited. 

No data is collected on the extent of financial exclusion in Guernsey. But applying the latest UK figure of just under one million unbanked people would mean at least 1,000 islanders do not have access to basic banking services. 

The situation could be worse in Guernsey because in the UK the larger current account providers are required by law to offer fee-free basic bank accounts to customers who are unbanked whereas in Guernsey they are not.

Ms Kerins added: “Without a bank account, people can find it difficult to rent somewhere to live or be employed. And as retailers move away from cash, and goods and services move online they are excluded not just from financial services but from the opportunity to access products at the optimum prices.

“A debit card isn't the be all and end all, but it is a big step in the right direction. It's about being able to hold your head high and gain self-esteem, being equal to the other shoppers in the queue, your mates at the bar or other parents at school.” 

The Patron of GCS, Bailiff Richard McMahon, claimed: “By arranging basic banking services for Guernsey residents who have been unable to obtain accounts, Guernsey Community Savings enables them to take their place in and contribute to their community. The charity is providing a vital service – it is an essential piece of what can be a complicated social jigsaw puzzle.

“It is clear people are confident in the wonderfully simple process and appreciate the personal approach and dedicated support of the team.”

Pictured: The Bailiff is the patron of the charity. 

Ms Kerins said the charity is ever grateful for its financial supporters ever since Chair Peter Neville started the initiative several years ago.

“We’ve received major grants from the Guernsey Community Foundation, Lloyds Bank Foundation for the Channel Islands and the Social Investment Fund and generous funding from Butterfield Bank, Skipton International, EFG Offshore, Cazenove Capital and RBS International,” she said

“VFX Financial, our principal partners in this initiative, have been superb. The Sure Community Foundation has donated £2,000 worth of equipment and credit. Voluntary support has been particularly important, including a regular supply of volunteers from Butterfield Bank. And this summer, it was great to be one of the two charities chosen to benefit from the Round Table’s Harbour Carnival.”

GCS also detailed some case studies, with real names redacted to uphold client confidentiality.

• Annie wanted to find a job but every time she got close to getting the role, she was asked if she had a bank account, and when she said she hadn’t, the job offer was taken off the table. With a GCS account, Annie is now in employment and her salary is coming straight to her account. Her physical and mental health has improved as a result.
• Through a long life of addiction, starting with alcohol and going on to gambling and spending issues, Marco had gradually lost all access to mainstream banking. He was sofa surfing and receiving his benefit by vouchers converted to cash, which he spent too quickly. We have opened an account and spend weekly sessions with Marco going through his spending patterns, we help him budget and Marco now has a roof over his head.

Pictured (top): GCS Manager Liz Pirouet Douglas with a client, with Managing Director Jane Kerins in the background.