Plend, the B Corp-certified consumer lender, has published its fourth ‘Annual Financial Inclusion Report’, the current financial system is failing millions, as 11 per cent of UK adults are now weighing up turning to loan sharks and 64 per cent are failing to meet their buy now pay later (BNPL) repayments on time.
The 2025 Plend report shines a stark light on the deepening credit divide across the country, exposing the dangerous consequences faced by millions who remain locked out of fair financial services. It reveals that since 2022, there has been a 22 per cent rise in users turning to loan sharks. Furthermore, half of all BNPL users report struggling to clear their balances, while 17 per cent are unable to meet even the minimum repayments, a 55 per cent increase on last year.
“Right now, we’re experiencing one of the most challenging socio-economic periods in recent memory,” said James Pursaill, CEO and co-founder of Plend. “The rise in people considering illegal and dangerous lending options like loan sharks should serve as a wake-up call to the industry, regulators, and policymakers. Affordable and fair credit access should not be a luxury, it’s a necessity. Without urgent, collective action, the human and economic cost will only escalate.”
Worrying findings
Conducted by Opinium Research in 2025, the report draws insights from 3,000 nationally representative UK adults, including an additional 500 black, Asian, and minority ethnic respondents. Further highlights from the report revealed:
- Forty-one per cent of UK adults are financially vulnerable, with 56 per cent reporting their situation worsened in the last year.
- Sixty-seven per cent believe they will need to rely on credit in the coming 12 months, highlighting that hardship is becoming chronic, not temporary.
- Nineteen per cent of loan holders now fail to meet minimum monthly repayments, more than doubling from nine per cent last year (a staggering 111 per cent increase).
- Forty-two per cent increase in individuals being declined for a basic bank account, up from 12 per cent to 17 per cent in a single year
- Twenty-nine per cent of people feel locked out of the financial system – rising to 50 per cent for low-income individuals, and 37 per cent among ethnic minorities.
- Fifty-eight per cent of deaf or disabled individuals report barriers accessing financial services, underscoring systemic accessibility failings.
Call for change
The report includes contributions and insights from key sector partners, including ClearScore, StepChange Debt Charity, and Fair4All Finance, and underscores the urgent need for industry-wide reform. Among its calls to action are:
- A call to the FCA to foster a more diverse credit market, encouraging mission-driven lenders and use of alternative data
- A call to aggregators, marketplaces and lenders to prioritise fair outcomes for customers
- A call to lenders across the sector to remove bias from the credit decision-making process
- A call to the government to help responsible, inclusive lenders to scale whilst serving the UK’s underserved population
