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UK Banks Pledge Fixes After FCA Finds One-Third of Basic Account Interactions Poor or Very Poor
The Financial Conduct Authority found around a third of basic bank account interactions rated poor or very poor in a 298-interaction mystery shopping exercise. Nine major banks and building societies have agreed to individual improvement plans and collective commitments to address access issues for vulnerable customers.
Jul 6, 7:01 PM·2m read1 source
The IndependentAudio version
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Nine major UK banks and building societies have agreed to individual improvement plans after the Financial Conduct Authority identified widespread shortcomings in how basic bank accounts are offered to customers in vulnerable circumstances. The FCA conducted a mystery shopping exercise covering 298 branch and telephone interactions.
It tested two scenarios involving people experiencing financial hardship with non-standard ID and someone who had been through bankruptcy but had standard ID.
The regulator rated 28 percent of interactions as good or very good, 38 percent as fair, 20 percent as poor and 14 percent as very poor. Firms did not consistently mention basic bank accounts early enough in conversations and often failed to offer them to eligible customers, including those facing financial hardship, without standard identification or with no fixed address.
Staff frequently did not recognize characteristics of vulnerability or adapt processes for customers needing assistance, instead directing them toward unsuitable online applications.
The firms committing to changes are Barclays UK, The Co-operative Bank, HSBC UK, Lloyds Banking Group including Halifax and Bank of Scotland brands, Nationwide Building Society, NatWest Group including RBS and Ulster Bank brands, Santander UK, TSB and Virgin Money UK.
They pledged to provide the right account first time with clear communication, make account opening straightforward without standard identity documents or a fixed address, and spot vulnerability early while offering accessible alternatives to online-only options.
