FCA publishes steps to improve access to bank accounts

In a report concerning its findings from follow-up work on payment account access and closures, the FCA has set out its expectations of firms, and next steps encouraging account providers to provide more support to individuals who want a bank account but do not have one.

It has also published independent research on the experiences of some considerably financially excluded consumers when accessing and using financial products and services.

The FCA recognises the efforts firms are making in trying to support customers attempting to access bank accounts, and encourages them to build on examples of existing good practice, like working with homeless charities to provide support tailored to the needs of customers in vulnerable circumstances.

The regulator also:

• Urges banks and other account providers are urged to increase awareness of basic bank accounts: these allow individuals to make and receive payments, but do not feature an overdraft facility. FCA found that several providers could make it easier to apply for one.
• Asks account providers to review their overall approach to account denials and closures, particularly with a view to ensuring vulnerable consumers do not lose out. Providers should also ensure people are not denied access simply because they cannot produce standard forms of ID, and make clear which alternative forms of ID are acceptable.
• In circumstances where accounts are closed or denied, reminds providers to act in line with Consumer Duty obligations, including communicating in a way that is clear and helpful for customers.
• Asks senior leaders in firms to sign an attestation confirming their personal confidence that they have not denied, suspended or terminated payment accounts because of customers’ political beliefs or views lawfully expressed, and that their systems and controls enable them to be confident of that statement.
  • In 2023, the FCA’s initial report, UK Payment Accounts: Access and Closures, did not find evidence of accounts being closed due to lawfully expressed political opinions. The latest report also found no any further evidence to suggest that this is happening.

The FCA’s report also highlighted account access issues experienced by other organisations. It expects firms to have a clear, properly considered definition of “reputational risk”. However, it has a limited remit to act for business and charity customers.