Why is the UK financial system on its head?
The UK financial system is not providing the support and funding for those that need it: it solely lends to people with money and assets, isolating the poor. Why does this matter? This makes the wealthy wealthier and the poor poorer and our youth poorer. This policy will make the wealth gap worse: and affects the way the economy functions which is a real problem for rich and poor alike.
Micro finance in the UK that has served the poor lacks strategy. It is not well suited to a financial approach as the customer have £0 assets. These customers just have modest just cash flow and the shirt they stand up in. Why is micro-finance essential in the UK? Whilst saving is preferable: people on low income are hit hard by volatile income and expenditure so they need to borrow money to cope with a short term and immediate gap.
How did the UK react to the financial crisis?
Regulation of the existing processes, but since 2008 banks have completely stopped lending to good people and or businesses without assets ie those that need it.
The Fruitful & Ezar Company
Over the last few months I have applied all my business nous and developed and proven a small but wonderful solution to serve some of the poorest communities of Birmingham. It’s a fantastic small business but too modest and needs to grow to serve the £2.3bn and growing UK market.
The industry norm for bad debt in this sub prime lending space we estimate is 40-55%, we have reduced this to c2% with a Christian relationship centric approach and on time in full collections are high. Customers uniquely tell us if they are having difficulty, to give us a chance to help see the challenge through.
Why do we need to turn the UK financial system on its head?
All the UK financial system has done is regulate the existing broken system. This has left these myths which have become the norm in the UK:
- Money is the purpose & meaning in business: NO there is a greater crisis of business meaning
- Poor people are lacking in some way: NO they are just like you and I but need help
- An economy reliant on debt is OK: NO this is unraveling & the debt bubble will burst
- The UK deficit better than Greece Portugal and Ireland: NO the UK deficit % GDP is higher than any EU country at 5% vs. Greece 2.2%
- The economy is growing YES but the quality and continuity of jobs for the lowest paid is falling and will continue to do so
- More money will make you happy – NO money is a disaster without the gift to appreciate what you have
- Peoples view that money belongs to us: NO: we are just temporary custodians of it
Money as a means to an end?
Getting back to basics: If Jesus valued money: look who he has given it to ! These 7 things above will ultimately usurp the value of any UK centric investments and create unrest.
Investing in the poor probably should be part of an investment portfolio and be part of a socially responsible approach?
What is the reality?
- Baby boomers are squirreling away far greater quantities of cash in old age reducing the UK’s solvency
- The UK is indebted beyond a sustainable level, and will crash, creating more poor people
- The growth in the UK economy continues to lead the EU in fueling our economy with debt beyond our means to repay
- 13m people in the UK are living in poverty; half of whom are in a working family
- Youth poverty and unemployed youth are at all time highs at risk of creating a lost generation
- The gap between the wealthy and the rest is continuing to widen
- Economies with disparity of wealth always create dictatorships: the means to restrain the masses
What did David Urquart the Bishop of Birmingham think about the Ezar Company?
The Bishop of Birmingham who is a very impressive social pioneer in Birmingham understands the problem only too well. He reflected Ezar have gone along way got the challenge sorted.
What is tragic and odd is the Church of of England have not done their research and have adopted a credit union approach. Credit Unions for the last 50 or so years have never proven to be sustainable nor culturally attractive in the UK and will burn cash and create bad debt.
That is where we have leveraged the knowledge gleaned from turnaround situations which is so valuable to identify when a business no matter how fast you pedal will just never work.
Call to action
As we are finalizing our plans by the end of March: if you know of any high net worth or influential individuals who have a heart for the UK poor I would appreciate an immediate introduction. Our customers need support as they fail to cope with the financial isolation the UK financial system creates: yet with the right support its on our heart to raise their aspirations and enable them be very resourceful entrepreneurs.
with best wishes,
Tom
Tom Pickering FIET
Chairman email: tom@fruitful.today www.fruitful.today
Ezar Today Limited: (part of the Fruitful Company)