Banks accused of failing most vulnerable customers
Summary
The UK's biggest banks have struggled to help their most vulnerable customers access basic bank accounts designed for people who cannot open regular accounts. The Financial Conduct Authority (FCA) found many banks pushed these customers toward unsuitable online applications, but banks have now agreed to make access easier and more suitable for those in need.Key Facts
- Basic bank accounts are free and do not allow overdrafts; they help people who cannot open normal accounts.
- Over four million people in the UK use basic bank accounts.
- Nine major UK banks and building societies offer these basic accounts, including Barclays, HSBC, Lloyds, NatWest, and Santander.
- The FCA conducted tests on banks and rated about one-third of their customer experiences as poor or very poor.
- Problems included failing to offer accounts to people without a fixed address and pushing vulnerable customers to online processes not suited to them.
- Banks have agreed to give the right account at the first try and make it easier to open accounts without standard ID or a fixed address.
- Banks will also offer alternatives to online applications for vulnerable people.
- A previous scheme, Breaking the Cycle, helped banks work with a housing charity to support those without a fixed address.
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