Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of amending the regulatory mandate under the Financial Services and Markets Act 2023 to require (a) the Financial Conduct Authority and (b) LINK to assess the adequacy of (i) account opening, (ii) loan applications, (iii) personal financial advice and (iv) other face‑to‑face banking services.

The Government recognises that the ability to access cash and in-person banking support remains essential for many, which is why we have secured the industry’s commitment to roll out 350 banking hubs by the end of this Parliament, ensuring that access to face-to-face banking is protected. Over 230 hubs have been announced so far, and over 160 are already open.

Banking hubs already offer everyday counter services, allowing people and businesses to withdraw and deposit cash, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out wider banking services.

The Government has been working closely with industry and significant progress has been made in enhancing baseline service standards, ensuring customers can access services without the need to bring their own devices and addressing service gaps. Some banks already offer account opening at hubs. Banking hubs are also currently piloting the use of printers, and some are experimenting with Saturday opening hours to better meet the demand for face-to-face banking services.

More widely, ensuring individuals have access to the appropriate financial products and services they need is a key priority for the Government. That is why I have committed to publish a Financial Inclusion Strategy later this year which will examine the barriers consumers face in accessing the products they need. This includes a focus on measures to increase access to affordable credit and support financial capability.

The Government is committed to ensuring that people can access high-quality, affordable, and suitable financial advice, as well as free-to-access financial guidance, when they need it. HM Treasury works closely with the Financial Conduct Authority (FCA), the independent regulator of the financial advice market, to ensure that the market works well, competitively, and fairly for both firms and consumers, and that the advice being provided is of high-quality. The Government keeps the regulatory framework under review and works with the FCA to ensure it remains fit for purpose. The Government and the FCA are taking forward proposals for a transformational new regime, Targeted Support, to improve access to consumer support with financial decision-making. Targeted Support would enable financial services firms to suggest appropriate products or courses of action using limited information about a customer and their circumstances.

Banking hubs are a voluntary initiative by banks as part of meeting their access to cash obligations, as legislated for in the Financial Services and Markets Act 2023. The Government are not minded to review the legislation passed by the previous Government.