On 4 September 2024, the Financial Conduct Authority (FCA) published a report setting out its findings from follow-up work on payment account access and closures. The report also sets out the FCA’s expectations of firms and proposed next steps.

The report follows on from the FCA’s September 2023 report on UK Payment Accounts: Access and Closures, which detailed findings from an initial review of issues relating to payment account access for individuals and organisations. The FCA has carried out follow-up work since the 2023 report and it sets out its findings in this latest report, along with its proposed next steps to address the harms identified in relation to account access, and its expectations of firms (including in respect of the Consumer Duty).

Some key points from the report

In the new report, the FCA:

• Recognises that banks, building societies and payment firms are trying to support customers to access accounts and encourages them to build on examples of existing good practice, e.g. working with homeless charities to tailor their support to the needs of customers in vulnerable circumstances.
• Urges banks and other account providers to increase awareness of basic bank accounts, which allow people to make and receive payments but without the availability of an overdraft. The FCA found that several providers could make it easier to apply for one.
• Asks account providers to review their overall approach to account denials and closures – and particularly to ensure vulnerable consumers are not losing out.
• Flags that account providers should review their overall approach to account denials and closures – ensuring in particular that people are not denied access just because they are unable to produce standard forms of ID and making it clear which alternative forms of ID are acceptable.
• Reminded providers that, where accounts are closed or denied, they should act in line with their obligations under the Consumer Duty, including communicating in a way that is clear and helpful for customers.
• Confirms that it has not found any further evidence to suggest that accounts are being closed due to lawfully expressed political opinions (following its statement in 2023 that it had not found any evidence of this happening). However, the FCA has asked senior leaders in firms to sign an attestation taking personal responsibility for ensuring rules have been complied with and that they are confident of their compliance going forward.

The FCA notes that it has also published independent, qualitative research on the experiences of some of the most financially excluded consumers when accessing and using financial products and services. This is intended to help industry and consumer groups understand how the right support can help these consumers effectively access services.

Next steps

The FCA expects payment account providers to take note of the detailed findings, expectations of firms, and next steps, as set out in the report.

It also flags that it expects that payment account providers will need to review their approach to account access and, if necessary, make improvements to ensure that they are meeting the expectations set out in the report. The FCA recognises that the amount of work this will entail is likely to vary from firm to firm, but it says it would expect firms to, in the coming months, be able to evidence that the matters about which concerns are raised in the report have already been addressed or will be addressed in a reasonable timeframe