Responsible Finance Impact Report 2023: Record Lending to Under-Served Businesses and Households
Responsible Finance, a not-for-profit organization, has revealed a significant increase in lending to under-served businesses, social enterprises, and households in the UK. In 2023, they lent a total of £287 million, marking a 14% jump from the previous year and the highest lending amount in their 30-year history.
The latest figures from Responsible Finance show that they made 90,531 loans in 2023, with 66% of them going to women and 11% to individuals from Black, Asian, and other ethnic minority groups. This lending activity has had a positive impact, creating 6,571 jobs, supporting 3,829 enterprises, and saving households £29 million in interest payments.
CDFIs, which represent community development finance institutions, have played a crucial role in providing affordable finance to those who would otherwise be excluded from traditional sources. In 2023, they helped households save £29 million in interest by lending £66 million to over 85,000 people. They also lent £102 million to start-ups and small businesses, creating over 6,000 jobs and safeguarding thousands more.
The impact of CDFIs has been widely praised by politicians, financial inclusion campaigners, SMEs, and social enterprises. The report also highlights the support provided to financially vulnerable households, the unleashing of entrepreneurial potential through enterprise lending, and the contribution to creating thriving places through lending to social enterprises.
The report, launched on May 20, 2024, at an event hosted by NatWest Group, showcases the positive outcomes of fair and affordable finance. It also emphasizes the importance of long-term investment and policy support to scale the CDFI sector and unlock sustainable and inclusive economic growth.
Overall, Responsible Finance’s new Impact Report provides a comprehensive insight into the work of CDFIs and the transformative effects of their lending activities. It underscores the importance of access to finance for all individuals and businesses, and the role that organizations like Responsible Finance play in creating a better future for all.
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