Potentially, community development finance institutions (CDFIs) represent a promising complement to the welfare system in its attempts to reduce poverty, since they provide finance to the financially excluded and potentially remove a barrier to their acquisition of assets. Drawing on a new survey of around 360 households in four UK cities, surveyed both before and after the 2008/09 recession, it is found that a major factor determining whether low-income households receiving CDFI loans are able to exit from poverty is their ability to save. This is found to be determined by a variety of attitudinal and institutional factors, including the ‘rationality’ of their coping strategies, the nature and extent of social networks and the extent of their access to money advice. It is argued that some of these causal factors are amenable to policy.