Major UK Banks Commit to Improving Basic Account Access

The Financial Conduct Authority (FCA) has secured commitments from nine major UK banks and building societies to reform how they offer basic bank accounts. The move follows a mystery shopping exercise involving 298 interactions, which found that 34% of customer experiences were rated as poor or very poor. The regulator discovered that staff frequently failed to mention basic accounts, overlooked customer vulnerabilities, and pushed individuals without fixed addresses or standard identification toward unsuitable online-only applications.

In response, institutions including Barclays UK, HSBC UK, Lloyds Banking Group, NatWest Group, and Nationwide Building Society have agreed to individual improvement plans. These firms, along with others including Santander UK, TSB, Virgin Money UK, and The Co-operative Bank, committed through UK Finance to reduce friction and provide accessible alternatives to digital journeys.

The initiative aims to support approximately 900,000 unbanked adults in the UK and improve services for the 4.3 million people who currently use basic accounts because they cannot qualify for standard current accounts. The FCA stated it will hold these firms to account to ensure the changes result in better outcomes for vulnerable customers.