UK FCA findings on consumer access to basic bank accounts

The UK Financial Conduct Authority (FCA) has published the findings of a mystery shopping exercise assessing how effectively firms promoted awareness and helped consumers access basic bank accounts (BBAs), outlining good and poor practice. The FCA found that while firms delivered good outcomes, inconsistent and poor practices are still widespread. Specifically, three themes stood out:

• Firms did not consistently mention and discuss BBAs early enough in the conversation.
• For consumers who did not have standard identification or a fixed address, staff often did not clearly explain what alternative evidence of identification consumers could use or what next steps they needed to take.
• Staff often did not recognise and respond to characteristics of vulnerability or adapt their approach for consumers who needed help to complete a standard or digital journey.

The FCA states that this creates a risk of firms preventing people from getting an appropriate account which can deepen financial exclusion. In response, the FCA has required firms to implement remedial plans and, through UK Finance, the firms have agreed a clear commitment to: (i) improve the identification and promotion of BBAs; (ii) reduce barriers for consumers with non-standard identification or no fixed address; and (iii) recognise and enhance support for vulnerable customers. The FCA will monitor progress through firm-specific oversight and sector-wide reviews and has indicated that it may take further action if sufficient improvements are not achieved.

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