Social Impact
Finance has a direct impact on society. Financial services enable people to improve their standard of living and to reach their full potential. People can use loans to expand their businesses, save for education or take out insurance to cover the costs of flooding. Access to finance is very important as people need to be able to contribute time and energy to address the sustainability challenge. Poverty and in-equality will hinder the possibility of a sustainable world.
Over 2.8 million individuals in the UK do not have bank accounts (New Economics Foundation). Without access to finance or burdened with high debt, many people in the UK are disadvantaged. Additionally, due to the cheap borrowing of credit, which has been allowed over the last several years, debt levels continue to grow at a faster rate than the UK generates (Grant Thornton). If these levels continue to rise it is likely that there will be an increased number of personal insolvencies.
The negative societal impact of indebtedness and personal financial is substantial. A recent report by the Legal Services Commission suggests that the financial crisis has cost the NHS between £15 to 20 million in addressing health problems which have arisen out of a wide range of domestic woes from divorce to neighbour disputes.