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nid 93789
Jul 07, 2026
csoo@vixio.com
United Kingdom
Financial Conduct Authority
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2131 charsFinancial Conduct Authority Publishes Basic Bank Account Mystery Shopping Findings and Industry Improvement Commitments
On an unspecified date, the Financial Conduct Authority (FCA) published findings from mystery shopping exercises conducted with Basic Bank Account (BBA) providers and announced industry-wide commitments to improve access to these simplified accounts.
The FCA completed 298 mystery shops across the nine designated BBA providers under the Payment Accounts Regulations 2015 (PARs): Barclays UK, The Co-operative Bank, HSBC UK, Lloyds Banking Group, Nationwide Building Society, NatWest Group, Santander UK, TSB, and Virgin Money UK. The assessment revealed significant inconsistencies in how firms support consumers seeking BBAs. Only 28 percent of interactions were rated as good or very good, while 34 percent were rated as poor or very poor. The FCA identified three key problems: firms did not consistently identify and discuss BBAs early enough; firms created avoidable barriers for consumers with non-standard identification or no fixed address; and staff did not consistently recognise and respond to characteristics of vulnerability or adapt support accordingly. In 36 percent of mystery shops, consumers risked leaving interactions unaware that a BBA was an option. In 69 percent of interactions involving consumers with non-standard identification or no fixed address, consumers risked rejection or delay due to how firms handled identification requirements. In almost 70 percent of interactions, staff did not properly acknowledge or respond to indicators of vulnerability.
The FCA has required all nine designated firms to develop remedial plans with clear accountability and measurable improvements. Through UK Finance, the industry trade body, firms have committed to three priority areas: identifying and offering BBAs promptly; removing barriers for consumers with non-standard identification or no fixed address; and recognising and responding to characteristics of vulnerability. UK Finance will lead a sector-wide review process, with progress assessments after six months and a broader review after twelve months. The FCA will monitor progress closely and take further action if improvements prove insufficient.
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2773 charsUK's Financial Conduct Authority Publishes Good and Poor Practice Findings on Basic Bank Account Providers
On July 7, 2026, the Financial Conduct Authority (FCA) published findings from mystery shopping exercises conducted with Basic Bank Account (BBA) providers and announced industry-wide commitments to improve access to these simplified accounts.
Basic Bank Account (BBA) are simplified accounts that support financial inclusion by helping people who might struggle to use mainstream banking. BBAs provide essential everyday banking features without overdrafts or fees, so people can receive wages and benefits, pay bills and participate in everyday economic life.
10 percent of the 1.3m adults who recalled applying for a BBA said they were declined, and this also does not take into account customers who didn't get as far as making an application in the first place. Therefore, further action is needed to ensure that those who remain unbanked can access the right account.
Under the Payment Accounts Regulations 2015 (the PARs), the nine largest standard personal current account providers in the UK must offer BBAs to legally resident consumers who either do not have a UK bank account or are not eligible for all other payment accounts.
The FCA's findings revealed three clear thematic areas for improvement:
Firms didn’t consistently mention and discuss BBAs early enough in the conversation.
For consumers who did not have standard identification or a fixed address, staff often did not clearly explain what alternative evidence of identification consumers could use or what next steps they needed to take.
Staff often did not recognise and respond to characteristics of vulnerability, or adapt their approach for consumers who needed help to complete a standard or digital journey.
The firms have now made a set of commitments to address the key issues found, and produce better, more consistent outcomes for consumers who might need a BBA. Designated firms have committed to:
Identifying consumers for whom a BBA may be suitable and to clearly communicate the eligibility criteria when relevant circumstances are identified.
Providing a clear explanation of the BBA application process where a BBA may be suitable.
Ensuring that where dual standard personal current account and BBA pathways are used, customers are supported towards an appropriate outcome without unnecessary friction or avoidable delays. Designated firms recognise that firms operate a range of customer journeys and account opening models. The focus of industry activity will therefore be on supporting good customer outcomes, removing unnecessary friction and ensuring customers understand the options available to them, rather than prescribing a single approach to account opening.
Regularly monitoring and testing outcomes to ensure firms are identifying and offering BBAs promptly.