Banks: Unbanked and Underbanked

Lord Holmes of Richmond Excerpts

Monday 11th April 2016 Lords Chamber

Asked by

[Lord Holmes of Richmond]

To ask Her Majesty’s Government what steps they are intending to take to address the issue of the unbanked and underbanked in the United Kingdom.

[Lord Ashton of Hyde (Con)]

My Lords, improving access to banking services is central to the Government’s agenda. This is why the nine largest personal current account providers in the UK already offer basic bank accounts that are truly fee-free. Basic bank accounts help people who are unbanked or who may be ineligible for a standard current account to access basic banking services. In addition, the nine banks will be legally required to offer basic bank accounts from September 2016.

[Lord Holmes of Richmond (Con)]

My Lords, on an individual basis this is about empowerment; on a business basis, this is about unleashing currently frustrated economic growth. What will the Government do to ensure that the unbanked and underbanked are a priority across Whitehall, and will they do everything they can to benefit from all that digital and FinTech offer?

[Lord Ashton of Hyde]

My Lords, the Government committed in the Budget this year to publish basic bank account market share data for the first time this autumn, which will show how the banks are meeting their commitments. This will enable government departments to look at how this is progressing and what more they can do. My noble friend is also right to highlight FinTech and the digital sector, as there are many opportunities for technology to support inclusion. I am pleased to say that my honourable friend the Economic Secretary to the Treasury today announced a package of measures to further support UK FinTech, and we will announce further measures in the not-too-distant future.