UK FOS response to HMT review on access to banking services

The UK Financial Ombudsman Service (FOS) has published its consultation response to HM Treasury's (HMT) call for evidence on the independent review into access to banking services. Drawing on its complaints data, the FOS highlighted the continued importance of in-person banking services, particularly for vulnerable customers, those requiring support with complex or sensitive issues, and certain groups that may face barriers to using digital channels. The FOS notes that reduced access to face-to-face banking can create difficulties for consumers who need tailored support, reasonable adjustments, assistance resolving urgent account issues, or protection from fraud and financial abuse.

It also observed that some micro-enterprises and small businesses continue to rely on physical access to bank branches, particularly for cash-related services. While recognising that branch closures may be a legitimate commercial decision, the FOS states that firms are expected to comply with the FCA's requirements when implementing branch and ATM closures. Where the firm has not met its obligations, the FOS would consider whether the firm should compensate the consumer for any distress or inconvenience they have experienced as a result. The FOS will continue to monitor complaint trends and share relevant insights, including where it sees evidence of increased consumer detriment or changes in complaint volumes or themes.

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