FCA orders banks to improve basic bank account access
FCA mystery shopping found a third of basic bank account experiences at nine major banks were poor; firms have committed to improvements.
The FCA identified widespread poor practice in providing legally mandated basic bank accounts for vulnerable customers. Banks must remediate access failures, aligning with Consumer Duty and financial inclusion obligations.
Direct Consumer Duty and conduct risk implications for the UK's largest retail banks, with potential enforcement follow-through.
Action Required
Audit basic bank account onboarding journeys, staff training, and complaints data to ensure legally mandated access and Consumer Duty outcomes.
Public naming of poor practice with mandated remediation creates near-term conduct and reputational risk.
Commission independent review of basic bank account onboarding; enhance frontline training, vulnerability handling, MI, and complaints RCA; report progress to board and FCA supervisors.
“People struggling should find it easier to access basic bank accounts, after nine banks committed to improving widespread poor practice identified by the FCA. A mystery shopping exercise by the FCA found a third of experiences with basic bank accounts were poor.”