New guidance body calls for 'cultural shift' around provider products

MaPS says more must be done to achieve significant change in the borrowers' ability to manage their money and believes providers should consider this when developing new products, services and features.

The body launched in April and brings together the services previously delivered by the Money Advice Service, the Pensions Advisory Service and Pension Wise.

Data shows that 9 million people in the UK are struggling with problem debt, 11.5 million do not have £100 in savings, and a further 24 million do not feel confident making decisions about financial products and services.

MaPS is now calling on banks to put customers’ financial wellbeing at the centre of their corporate purpose and to ensure their products and services include features to help people improve their ability to manage their money well.

Sir Hector Sants, chair of the Money and Pensions Service, said: “Money is a fundamental part of life and is central to people’s health and wellbeing. A population that can manage their money and pensions well is essential, and the retail banking sector has a critical and central role to play in moving the dials for the UK population. It is time for the sector to take a much more proactive, holistic approach to financial wellbeing, shifting the balance from the cost of remediation to investment in prevention.

“We encourage the sector to work with us to develop and implement the changes needed to improve people’s financial capability, as well as rebuilt trust and confidence in financial services.”