Cashfloat, a UK-based lender that is part of leading fintech firm Western Circle Group and a specialist in short-term loans since 2014, announced it has launched an initiative to improve financial education and literacy by providing free, accessible guides and resources, and by signposting across its direct lending brands, so loan applicants and individuals with credit concerns can find reliable, accurate information with ease.
The company, which develops proprietary fintech systems to make UK-based lending faster, safer, and fairer, has long advocated for awareness. It aims to address widespread misunderstandings about lending terms, options, and products that can be detrimental to financial health.
Reasons Behind Western Circle Group’s Efforts to Combat Low Levels of Financial Literacy
Research conducted by the Financial Capability Survey attempted to quantify the reality of financial literacy levels among the UK adult population and found that over 20 million, or 39%, are not confident that they have the skills and knowledge to manage their money properly.
This study also identified that 11.5 million adults have under £100 in savings, putting them at risk of financial instability, and of the nine million who are in serious debt, only a third access help to restore their finances and repay their debts.
"Financial literacy isn’t about having a formal qualification in finances or accountancy, but having the understanding every person needs to make informed decisions, whether choosing a savings account, applying for a loan, or recognising when a website might potentially be a scam," said Ofer Valencio Akerman of Western Circle Group.
"Things that some people might consider simple, such as verifying the credentials of a lender to ensure they are properly regulated or knowing how an interest rate translates to the total repayable, are incredibly complex to others, and can put those in financial hardship in an even more difficult position," Akerman continued.
"Our role as a fintech specialist is to develop innovative technologies that make the world of short-term loan lending more accessible, breaking down barriers to safe, responsible borrowing for people who might otherwise have felt that properly regulated loan products weren’t available to them. Improving know-how and literacy go hand in hand with that."
Examples of Free Financial Literacy Resources From Western Circle Group
Western Circle has several brands, each with a specific remit, whether focusing on fair borrowing options for people who have a low credit score or lack a credit score altogether, and niche brands concentrating on providing safe lending to particular demographics.
Each offers varied resources and guidance for borrowers, all of which is available regardless of whether a visitor decides to apply for a product with a Western Circle brand or is simply looking for information. They include:
- A comprehensive library of Education Guides via Cashfloat, covering topics such as what open banking loans mean, how to use borrowing responsibly following a job loss or redundancy, and advice about managing family finances and creating budgets.
- Free affordability calculators and eligibility checkers, ensuring borrowers don’t submit applications where there is little likelihood of acceptance, and can verify whether they can comfortably afford pay-day loan repayments in advance.
The group’s brands also provide simplified, step-by-step information through "How It Works" pages, ensuring anyone considering a loan has all the details they need before applying and before incurring any credit searches.
The Importance of Lender Proactivity in Driving Improvements in Financial Literacy
Western Circle is a well-established innovator, and its focus on educating and informing its customers is part of a brand-wide commitment to parity and to changing the convention that those in most need of responsible borrowing are at greatest risk of resorting to high-cost unregulated lending.
Akerman added, "We believe it's fundamental that anyone who speaks with our customer service teams receives the right information and the right support, without being left to make guesses or assumptions about serious financial decisions that can have a big impact on their families and financial well-being."
The hope is that other lenders and fintech firms will follow suit, ensuring that every prospective applicant who interacts with a direct lender or financial services provider is signposted to advisory information, particularly for those ineligible for borrowing or in a debt crisis, who may require dedicated support during financial difficulty to improve their financial situation.
About Cashfloat
Founded in 2014, Cashfloat is a U.K.-based direct lender providing online loans to individuals across a range of credit scores. Cashfloat focuses on accessible digital lending and transparent financial services for borrowers seeking short-term credit solutions. The company operates as a trading style of Western Circle Ltd, which is fully authorized and regulated by the Financial Conduct Authority.
About Western Circle Group
Western Circle Group is a UK-based, FCA-authorised consumer credit provider specialising in fast, responsible, online lending. Western Circle Ltd (company number: 07581337) is fully authorised and regulated by the Financial Conduct Authority (FRN: 714479) and with the Information Commissioner’s Office (ICO: Z3305234).
Disclaimer
This press release is for informational purposes only and does not constitute financial advice. Western Circle Group and Cashfloat encourage all consumers to provide accurate information during applications and to borrow responsibly. While the financial literacy tools mentioned are free to access, they are intended as educational resources and not as a substitute for professional debt counseling or independent financial advice.
Media Contact
Ofer Valencio Akerman
Cashfloat
info@cashfloat.co.uk
