The Financial Conduct Authority has published mystery shopping findings showing widespread poor practice in how major banks and building societies handle access to basic bank accounts, and said the nine firms legally required to offer them have agreed to improve. Basic bank accounts are intended for people who may be unable to access standard current accounts and provide essential banking services without fees or an overdraft. The review found firms were not consistently identifying eligible customers or supporting those in vulnerable circumstances, including people in financial hardship, without standard identification or with no fixed address. Across 298 branch and telephone interactions, 34% were rated poor or very poor. Firms often failed to mention basic bank accounts early enough, and in around 15% of cases did not mention them at all even after a prompt from the customer. Overall, 62% of consumers were not given a clear route to apply directly for a basic bank account. For customers with non-standard identification or no fixed address, 69% faced a risk of rejection or delay because staff did not clearly explain alternative identification options or next steps. In almost 70% of interactions, staff did not properly recognise or respond to vulnerability or accessibility needs, including by steering customers toward unsuitable online-only journeys. In response, firms have agreed individual remedial plans and a collective commitment through UK Finance to offer the right account first time, make account opening more workable for customers without standard ID or a fixed address, and provide accessible alternatives where digital channels are unsuitable. The FCA said firms must back this with clear accountability, outcome monitoring and transparent reporting. UK Finance will coordinate a sector review after six months to assess progress against the commitments and a broader review after 12 months covering customer outcomes and remaining gaps. Separately, the FCA will monitor each firm's remedial plan and said it may take further action if improvements are not sufficient and sustained.
Financial Conduct Authority2026-07-07
United Kingdom Financial Conduct Authority secures commitments from nine banks to improve access to basic bank accounts
The United Kingdom's Financial Conduct Authority has secured commitments from nine banks and building societies to improve access to basic bank accounts after finding widespread poor practice. Its mystery shopping showed that a third of interactions were poor or very poor, with vulnerable customers often not being told about basic accounts or being pushed into unsuitable online applications. Firms have agreed to improve first-time account matching, support customers without standard ID or a fixed address, and offer alternatives to online-only journeys.