Financial exclusion and banking regulations in the United Kingdom: a template analysis.

Abstract

This thesis examines the self-regulatory nature of the United Kingdom banking industry in relation to its effectiveness at promoting financial inclusion. This exploration is conducted through an examination of the changing culture of the banking industry from the 1600's to the present day whilst considering the effect banking regulation has played on financial exclusion and exploring the expectation gap between bank delivery and customer expectation. The thesis also examines in detail the characteristics of financial exclusion within the United Kingdom in relation to the self-regulatory mechanism, which regulates the industry, namely the Banking Code. Furthermore the thesis questions whether banks have a social responsibility towards customers who experience financial exclusion or difficulties. This thesis uses template analysis in order to analyse data collected through interviews and surveys.Through template analysis the researcher hasproduced two main templates which can be used to illustrate the process of the development of financial exclusion and its relationship with banking regulation. Stemming from these templates the thqsis puts forward four recommendations which could be adopted by the banking industry to help promote financial inclusion within the United Kingdom. The thesis makes two essential contributions to knowledge. The first is that financial exclusion has been explored using a novel methodology, namely, template analysis and a greater understanding of this social phenomenon has been uncovered. The second contribution to knowledge is that the research has shown there is an expectation gap between customer and banker which has arisen from the cultural evolution of the banking industry and in turn this has helped promulgate financial exclusion. Financial exclusion is therefore a complex and diverse problem. The findings in this thesis could be used for further research encompassing an international dimension as well as looking at other areas of the United Kingdom's financial service providers such as insurance. Therefore this piece of research can be used and adapted to examine further avenues of financial exclusion of a cross industry sector and global scale