Banking clubs

Banks have a virtual monopoly of the electronic money transfer mechanisms such as Direct Debit that are the cheapest way to pay for goods and services. The DWP and local authorities are converting to these payment mechanisms to save themselves costs.

Fair Money thinks that, given the behaviour of banks towards their customers of the banks, that pushing people into opening bank accounts is wrong. It is also misguided, because the evidence is that people perform more poorly at managing their money once it is in a bank account.

Fair Money banking clubs are collaborative associations of people wanting to use transactional banking without having a bank account. The clubs provides facilities for:

• Making and receiving electronic payments
• Managing household budgets and cash flow
• Bulk purchase of commodity items and utilities
• Club consolidated cash flow support loans
• Group purchase of financial products