Calls for banking help for those who ‘can’t afford’ to struggle

In the FIFS’s first financial inclusion strategy, external, it calls for the establishment of a £20m fund to increase community lenders and expand the availability of affordable credit.

Mr Pearson wants support from mainstream banks for people who are on the fringes of banking – people who don’t yet have a full bank account, or have got a basic account, but might be struggling with managing their overdraft.

“The charges can be very extensive so I think the banks need to take a long hard look at how they could give more support to people in that part of society,” he said.

The Dormant Assets Scheme could potentially release a further £880m for good causes.

A Scottish government spokesperson said: “Following review and consultation by the UK government, the Dormant Assets Act 2022 will enable the scheme to be expanded to include not just bank and building society accounts but also dormant assets across the insurance, pensions, investment, wealth management and securities sectors.

“While it is expected this will lead to an increase in the funding Scotland receives from the scheme, the extent and timing of this are still unknown.”