In a new report, the Financial Conduct Authority (FCA) encourages
account providers to do more to support those who want a bank
account but don't have one.
The FCA has recognised that banks, building societies and payment
firms are trying to support customers to access accounts and is
encouraging them to build on examples of existing good practice,
such as working with homeless charities to tailor their support
to the needs of customers in vulnerable circumstances.
Banks and other account providers have been urged to increase
awareness of basic bank accounts, which allow people to make and
receive payments but without the availability of an overdraft.
The FCA found that several providers could make it easier to
apply for one.
The FCA has asked account providers to review their overall
approach to account denials and closures – and particularly to
ensure that vulnerable consumers aren't losing out. Providers
should also ensure people aren't denied access just because they
can't produce standard forms of ID, and make it clear which
alternative forms of ID are acceptable.
Where accounts are closed or denied, the regulator has reminded
providers that they should act in line with their obligations
under the Consumer Duty, including communicating in a way that is
clear and helpful for customers.
The FCA has also published independent, qualitative research on
the experiences of some of the most financially excluded
consumers when accessing and using financial products and
services. This will help industry and consumer groups understand
how the right support can help these consumers effectively access
services.
Sheldon Mills, Executive Director of Consumers and Competition at
the FCA, said:
'We've seen examples of really good practice – with account
providers helping people access a product vital for financial
inclusion – but also areas where there is room for improvement.
By sharing both, we want to achieve more consistent outcomes,
with people being aware of what accounts there are that might be
right for them, more support for the vulnerable and people not
being denied access without good reason.'
The FCA's report also highlighted issues other organisations have
experienced accessing accounts – including pawnbrokers, charities
and in the adult entertainment sector. It has set out an
expectation that firms should have a clear, properly considered
definition of reputational risk. However, it has a limited remit
to act for business and charity customers.
In 2023, the FCA said that it had not found evidence of accounts
being closed due to lawfully expressed political opinions. The
new report confirms it has not found any further evidence to
suggest that this is happening. However, it has asked senior
leaders in firms to sign an attestation taking personal
responsibility for ensuring rules have been complied with and
that they are confident of their compliance going forward.
Notes to editors
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Read the report and
research report.
