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Nationwide, Barclays, HSBC, NatWest and Lloyds to Change How They Offer Bank Accounts
Banks will improve basic account offers after FCA mystery shopping rated 34% of interactions as poor or very poor.
On Tuesday, 13 major UK banks confirmed new rules to improve basic bank account access following a Financial Conduct Authority investigation identifying widespread poor practices.
The regulator's investigation included 298 mystery shopping exercises, finding 20% of interactions were poor and 14% very poor, with staff often failing to mention basic accounts early.
While 4.3 million UK adults currently hold a basic bank account, the FCA estimates around 900,000 people remain completely unbanked, limiting access to wages and benefits.
Banks have agreed to individual improvement plans, while Peter Tyler, director of personal banking at UK Finance, highlighted the recently expanded 'breaking the cycle' initiative providing support.
Emad Aladhal, director of retail banking at the FCA, stated the regulator will hold firms to account, noting that 'banking firms' engagement with customers still needs improvement.