Skip to content 
Search

Latest Stories

FCA urges banks to improve access to basic bank accounts

The FCA is urging providers to increase awareness of basic bank accounts, which offer essential payment services without overdraft facilities.

FCA urges banks to improve access to basic bank accounts

THE Financial Conduct Authority (FCA) has called on banks, building societies, and payment firms to enhance support for individuals seeking to open a bank account, particularly those in vulnerable circumstances.

In a new report, the FCA acknowledged current efforts by financial institutions to help customers access accounts but emphasised the need for more consistent practices. The FCA is urging providers to increase awareness of basic bank accounts, which offer essential payment services without overdraft facilities, and to simplify the application process.


The regulator also advised account providers to review their policies on account denials and closures, ensuring that vulnerable consumers are not unfairly excluded. It emphasised that customers should not be denied access solely because they lack standard forms of identification and called for greater clarity on alternative acceptable IDs.

The FCA reminded providers to comply with their obligations under the Consumer Duty when closing or denying accounts, ensuring clear and supportive communication with customers.

Additionally, the FCA released independent research highlighting the challenges faced by some of the most financially excluded individuals in accessing financial services. This research aims to help the industry and consumer groups better support these individuals.

Sheldon Mills, executive director of consumers and competition at the FCA, said, "We’ve seen examples of really good practice... but also areas where there is room for improvement. By sharing both, we want to achieve more consistent outcomes."

The report also addressed concerns from various organisations, including pawnbrokers and charities, about difficulties in accessing accounts. While the FCA expects firms to have clear definitions of reputational risk, it has a limited role in advocating for business and charity customers.

In its 2023 findings, the FCA reported no evidence of accounts being closed due to lawfully expressed political opinions, a conclusion reaffirmed in the latest report. The FCA has asked senior leaders in firms to personally attest to their compliance with regulations.

More For You

Asian firm acquires Kings Court Hotel for £2.75m

UK-based Nanak Hotels acquired the 60-room Kings Court Hotel in Warwickshire for £2.75 million. (Photo: Colliers International UK)

Asian firm acquires Kings Court Hotel for £2.75m

UK-BASED Nanak Hotels recently acquired the 60-room Kings Court Hotel, a 17th-century property in Warwickshire, England, for £2.75 million. This is the first regional acquisition by the privately held firm led by British Indians Harpreet Singh Saluja and Karamvir Singh.

Nanak Hotels, which operates a UK property portfolio, plans to invest in the property's refurbishment and repositioning, according to a statement from Colliers International UK, which brokered the transaction.

Keep ReadingShow less
Priya Nair becomes first woman CEO in Hindustan Unilever's history

Priya Nair (Photo: Unilever)

Priya Nair becomes first woman CEO in Hindustan Unilever's history

PRIYA NAIR has been appointed as the CEO and managing director of Hindustan Unilever Ltd (HUL), effective from August 1. She will be the first woman to lead the company in its history.

The announcement was made by HUL on Thursday (10). Nair, who currently serves as president, Beauty & Wellbeing at Unilever, will take over the role from Rohit Jawa, who will step down on July 31 to pursue other interests.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Economy shrinks again in May, hitting Labour’s growth plans

THE UK economy contracted unexpectedly in May, marking the second consecutive monthly decline, according to official data released on Friday. The figures present a challenge for the Labour government as it attempts to revive economic growth.

Gross domestic product fell by 0.1 per cent in May, following a 0.3 per cent contraction in April, the Office for National Statistics (ONS) said in a statement.

Keep ReadingShow less
SBI UK cuts mortgage rates

The bank's commitment to green lending reflects focus on sustainability (Photo: Getty Images)

SBI UK cuts mortgage rates

BANKING major State Bank of India (UK) has cut interest rates on its buy-to-let mortgage products to help landlords reduce borrowing costs.

The bank said the rate cuts would help landlords invest in rental properties and meet growing demand for rental homes across the UK.

Keep ReadingShow less