Community Development Finance Association (CDFA) has rebranded to Responsible Finance, as it launches research showing a 45 per cent rise in loans by its network of responsible lenders.
The membership organisation for ethical lenders said it chose to rebrand as it felt its former name, CDFA, didn’t clearly demonstrate the work its members did, and that it had commissioned research which outlined that it wasn’t well understood.
The spokeswoman said: “We worked closely with members and stakeholders to find a new name and a new narrative that is much clearer and explicit about what we do, and that reaches more people. We think it is much easier to understand, and we have a powerful and passionate way of describing how our members are helping financially excluded people, social enterprises and businesses.”
The rebrand comes alongside a new website, and new animation to explain how the organisation works. Responsible Finance calls itself the “voice of the responsible finance industry”.
Responsible Finance has also today released its interim summary The Responsible Finance Industry 2015. The survey, which the organisation publishes annually, was completed by 51 responsible finance providers.
Over £250m lent
It shows that a total of £251m was lent to 57,800 customers in 2015, a record amount for the sector and 45 per cent more than the £172m lent in 2014. Responsible Finance said that this increase represents “not only the demand in the market for responsible products, but is also an indication how the model can work effectively”.
There was a growth of 60 per cent in lending to social enterprises up to £126m to 450 social enterprises, which was due to “both a recovery by the social banks following a period of restructuring, and continued growth in other responsible finance providers lending to social enterprises”.
Lending to business grew 36 per cent to £98m to 11,440 businesses, and lending to consumers grew 14 per cent to £22m to 45,200 individuals.
Ben Hughes, chief executive of Responsible Finance, said: “We know that too many people can’t access affordable and fair finance, denying them economic and social opportunities. Responsible lenders are combatting this by investing in record numbers of people, places and businesses. In the last year they have delivered over £250 million in loans across Britain’s towns and cities, which is creating opportunities, boosting enterprise and fuelling growth.
“It is absolutely vital that the government continues to support this new and developing industry so that its many social and economic benefits continue.”
Responsible Finance’s report, which will be launched tonight at an event in the House of Commons, predicts that its members will lend a further £1.9 billion by 2020, supporting 75,000 more businesses and helping 360,000 more people avoid high interest lenders.
