Fair Banking Act: A Step Towards Fairer, More Inclusive Finance

For millions of people across the UK, accessing affordable credit isn’t just difficult—it’s nearly impossible. Mainstream banks too often overlook low-income households, single-parent families, and vulnerable individuals, creating a financial system that excludes the very people who need support the most. This inequality traps families in cycles of poverty and forces many to rely on high-cost lenders or unsafe borrowing. That’s why the Fair Banking Act could be transformative. Designed to level the financial playing field, the Act aims to ensure that community finance brings fair, affordable, and responsible lending to those most in need.

In this article, we’ll explore what the Fair Banking Act is, why it matters, and how it could help build a more inclusive financial future for the UK.

What is the Fair Banking Act?

The Fair Banking Act is a proposed piece of legislation aimed at ensuring all individuals and businesses have access to affordable credit. It seeks to address the imbalance in the current banking system, where many people are forced into high-cost, subprime credit options due to their financial circumstances or lack of access to mainstream banking services. The Act  promotes fairness, transparency, and inclusivity within the financial sector, helping to level the playing field for everyone.

Who Benefits from the Fair Banking Act?

The benefits of the Fair Banking Act are wide-reaching and will impact:

• Homeowners in Need of Financial Support: Those who struggle to secure affordable loans for essential home repairs, improvements, or energy efficiency upgrades will gain better access to credit.
• Small Businesses: The Act will open up avenues for small businesses to access affordable loans to grow and succeed.
• Individuals in Vulnerable Situations: People excluded from traditional financial services due to personal circumstances (e.g., poor credit history) will have better opportunities to access fair lending options.
• Local Councils: By promoting responsible lending, councils will be able to offer better financial solutions to their communities.

Why is the Fair Banking Act So Important?

The Fair Banking Act represents a fundamental shift toward a more equitable financial system. It ensures that everyone, regardless of their financial history or current circumstances, can access the financial support they need to thrive. This is especially important for those who may otherwise be excluded from mainstream banking, leaving them vulnerable to high-interest rates and debt traps.

At Lendology, we are deeply committed to fairness in finance. Since our founding in 2005, we’ve worked alongside local councils to provide sustainable funding solutions for homeowners, focusing on accessibility, affordability, and inclusivity. Our approach to lending ensures that every borrower receives the same fixed interest rate, regardless of their financial background. The Fair Banking Act aligns with our values and mission, reinforcing the importance of responsible lending practices that prioritise people over profits.

Why it matter to Lendology and our communities.

At Lendology CIC, we’ve seen firsthand how access to affordable credit can change lives.  Fairness and inclusivity in finance have always been at the heart of what we do. As a B Corp and social enterprise lender, we aim to provide lending solutions that make a positive impact socially and environmentally. The Fair Banking Act is in line with these goals, and we believe it could support greater access to affordable credit, particularly for those in disadvantaged communities.

The Fair Banking Act would help to formalise and support the role of responsible lenders, like Lendology, across the UK. T For us, this means greater recognition, more sustainable funding streams, and the ability to reach even more people in need. For our customers, it means fewer barriers, less stress, and more pathways to secure, healthy, and energy-efficient homes.

Why It Matters for the UK’s Future

The Fair Banking Act isn’t just about changing the rules for a few—it’s about reshaping the entire financial system to serve more people, fairly. Over 17 million people in the UK face some level of financial vulnerability, and the cost-of-living crisis continues to expose how unequal our access to finance really is. When people can’t borrow safely or affordably, they delay essential home repairs, turn to high-cost credit, or worse—go without.

This proposed legislation could unlock economic resilience, particularly in underinvested communities. With the support of local authorities and ethical lenders, it would stimulate local economies, create jobs in retrofit and green construction, and reduce the burden on public services by improving health and housing conditions.

Put simply, a fairer financial system strengthens our communities, our economy, and our environment—and that’s something we all benefit from.

Support the Fair Banking Act Today!

Lendology CIC proudly supports the Fair Banking for All Campaign, calling for the UK government to introduce the Fair Banking Act. We’ve been lending with heart and purpose for nearly two decades, but we know we can’t do it alone. That’s why we support any legislation that recognises the power of inclusive finance and gives more people access to the tools they need to thrive.

The JustMoney Movement has made it easy to take action. Write to your MP today and ask them to support the Fair Banking Act – it only takes a minute: JustMoney Fair Banking Campaign

✅ Want to learn more? Visit www.fairbankingforall.org
✅ Share your support on social media using #FairBankingForAll
✅ Explore how Lendology is helping make fair finance a reality at lendology.org.uk

Together, we can help create a fairer financial system for everyone.