FCA: Nine UK Banks Pledge to Fix Basic Bank Account Access

The Financial Conduct Authority, the UK's financial regulator, said on July 7, 2026 that nine large banks and building societies have committed to fix poor practices it found in how they offer basic bank accounts. The announcement followed a mystery shopping exercise in which researchers posing as customers in vulnerable situations approached the firms in branches and by phone. About a third of the interactions were rated poor or very poor. This article explains what the regulator found, what the firms have promised, and what readers who need a basic account can do. It is based on the FCA press release and does not replace advice from the FCA, a bank or a debt charity.

What a basic bank account is

A basic bank account has no fees and no overdraft. It is meant for people who might not otherwise be able to get a standard current account, for example because of a poor credit record. Nine large firms are legally required to offer basic accounts. The FCA named them as Barclays UK, the Co-operative Bank, HSBC UK, Lloyds Banking Group, which includes Halifax and Bank of Scotland, Nationwide Building Society, NatWest Group, which includes RBS and Ulster Bank, Santander UK, TSB and Virgin Money UK, which is now a Nationwide brand.

What the FCA found

The mystery shopping covered 298 interactions across branches and telephone calls. The researchers tested two situations: a person in financial hardship who had non-standard identification, and a person who had been bankrupt but had standard ID. In both, the person showed signs of vulnerability. The FCA rated 28% of interactions as good or very good, 38% as fair, 20% as poor and 14% as very poor. Taken together, around a third were poor or very poor.

The regulator listed several kinds of poor practice. Firms did not consistently offer a basic account to customers who could benefit from one, including people in financial hardship, those without standard ID and those without a fixed address. Staff often did not mention basic accounts at all. In some cases, vulnerable customers were steered towards online applications that did not suit their needs. The press release itself does not give detailed examples of good practice, and points readers to the FCA's full findings for that.

How many people are affected

The FCA cited its Financial Lives survey for 2024. More than 97% of UK adults have a current account. About 4.3 million adults hold a basic bank account, and around 0.9 million adults are unbanked, meaning they have no current account. Among the 1.3 million adults who recalled applying for a basic account in the two years to May 2024, 10% said they had been declined. Those numbers show both that the product is widely used and that a minority of applicants run into obstacles.

What the banks have promised

Each of the nine firms has agreed an individual improvement plan with the FCA. In addition, through the trade body UK Finance, the firms have made collective commitments. They will aim to provide the right account the first time, with clear communication and as little friction as possible. They will make it straightforward for customers who lack standard ID or a fixed address to open an account. And they will identify vulnerability early and offer accessible alternatives to online-only applications.

What the regulator said

Emad Aladhal, the FCA's director of retail banking, said that progress had been made, with more than 97% of adults holding a current account, but that banks still need to improve how they engage with customers. He said the largest banks have committed to improving how they offer these accounts and that the FCA will hold them to account. He also said bank accounts are important for financial inclusion. Peter Tyler, UK Finance's director of personal banking, said a basic account can be an important first step towards financial independence, that most holders have positive experiences, and that UK Finance and its members are committed to raising standards and expanding access.

Support beyond the banks

The press release points to an expanded UK Finance pilot called Breaking the Cycle, which offers practical support to people facing barriers to essential banking, such as having no fixed address. It does not set out step-by-step guidance for applicants and does not say what to do if an application is refused.

What readers can do

The FCA announcement does not provide a checklist, so the following points are general suggestions and not regulatory guidance. A person who needs an account can ask a bank directly whether it offers a basic account and can ask to apply in a branch or by phone if an online form does not work for them. People who are declined can ask the bank for the reason and can consider whether a complaint, a charity that helps with banking access or free debt advice is appropriate. The FCA website explains how consumers can raise concerns with firms.

What happens next

The FCA said it will hold the banks to account to make sure change happens, and the firms are carrying out their plans. The announcement does not set out a date for a follow-up review, so it is not possible to say when progress will be measured. Readers who work in or follow consumer banking should watch for any later publication of results from the FCA or UK Finance.

Why it matters

Opening an account can be a practical hurdle for people who are most in need of one. Without an account it is harder to receive a salary, receive state benefits and pay household bills at the lowest cost. The FCA's findings suggest that, for some customers, the barrier lay in how banks applied the rules rather than in the rules themselves. This article summarizes a public announcement and is for general information only.