Nine UK Banks Agree to Ease Basic Account Access After FCA Review

Nine UK banks and building societies agreed to make basic bank accounts easier to open after a Financial Conduct Authority review found service gaps for customers without fixed addresses or standard identification. The regulator examined 298 branch and telephone interactions and rated 34 percent poor or very poor.

Failures included not offering basic accounts when needed and directing vulnerable customers to unsuitable online applications.

The nine institutions committed to offering the appropriate account on the first attempt, providing alternatives to online applications for vulnerable customers, and simplifying access for those without standard identification or a fixed address. More than four million people in the UK hold basic bank accounts.

These accounts allow receipt of wages and benefits and payments by debit card or direct debit but carry no overdraft facility.

The banks are Barclays, The Co-operative Bank, HSBC, Lloyds Banking Group, Nationwide Building Society, NatWest, Santander, TSB and Virgin Money. A director of retail banking at the Financial Conduct Authority said bank accounts are important for financial inclusion and that the changes aim to ensure people who could benefit are not missing out.

A director of personal banking at UK Finance said the industry recognizes that more can be done and pointed to an existing scheme with the housing charity Shelter to help people without fixed addresses obtain accounts.