Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the steps taken by the banking sector to meet the needs of vulnerable customers.

This Government believes that individuals, regardless of their background or income, should have access to useful and affordable financial products and services, including a bank account.

Basic bank accounts are a key financial inclusion policy, enabling people, including those that are vulnerable, to manage their money on a day-to-day basis effectively, securely and confidently. These are bank accounts that are fee-free for all everyday banking services and have no overdraft facility. The 9 largest personal current account providers in the UK are legally required to offer fee-free basic bank accounts to customers who do not have a bank account or who are ineligible for a bank’s standard current account.

The Treasury publishes data on basic bank accounts annually. The December 2019 publication shows that in total there are nearly 7.5 million basic bank accounts open in the UK.

UK banks’ and building societies’ treatment of their customers is governed by the Financial Conduct Authority (FCA). The FCA requires firms to identify particularly vulnerable customers, and to deal with such customers appropriately. This includes older people, disabled people, and those who may lack the capacity to manage their account on their own.

Further to this, the FCA recently concluded the first stage of a consultation on firms’ treatment of vulnerable customers and it will be issuing a second consultation in the spring. Protecting vulnerable customers is a key priority for the FCA. While many firms have made significant progress, the Treasury and the FCA want to see this issue being taken seriously by all firms so that vulnerable customers receive consistently fair treatment.

The Treasury continues to work with firms and the FCA to ensure that the needs of vulnerable customers are met.