UK banks to improve basic account access after FCA review

Millions of people struggling to open a bank account could soon find it easier after nine of Britain's largest banks and building societies agreed to overhaul their practices. The move follows an investigation by the Financial Conduct Authority (FCA) which found widespread failures in how these institutions offered basic bank accounts, leaving vulnerable customers, including homeless people and those in financial hardship, without essential banking services.

The FCA's review, which included 298 mystery shopping exercises at bank branches and over the phone, found that one in three customer experiences with basic bank accounts was rated poor or very poor. Investigators discovered bank staff often failed to mention basic accounts early enough, overlooked signs of customer vulnerability, and frequently directed people toward unsuitable online applications. People without standard identification or a fixed address were among those most likely to face barriers.

Basic bank accounts are designed for individuals who cannot qualify for a standard current account, including those with poor credit histories, financial difficulties, or no permanent home. The accounts are free, do not offer...