Global: FCA Urges Banks to Simplify Account Opening Processes

The U.K.’s Financial Conduct Authority (FCA) has called on banks to make it easier for customers to open accounts, emphasizing the importance of financial inclusion. In a report released on Wednesday, September 4, the regulator highlighted the need for banks and other account providers to raise awareness about basic bank accounts and identified several areas where the application process could be streamlined.

Sheldon Mills, FCA Executive Director of Consumers and Competition, noted in the press release, “We’ve observed some commendable practices where account providers are facilitating access to essential financial products. However, there are still areas needing improvement. By sharing these insights, we aim to ensure that people are better informed about available accounts, that vulnerable customers receive more support, and that no one is unjustly denied access.”

The FCA has urged banks to reassess their policies regarding account denials and closures, particularly to ensure that vulnerable customers are not excluded. The regulator stressed the importance of not denying access to individuals who may lack standard identification documents.

The report also clarified that, despite concerns, there is no evidence of accounts being closed due to “lawfully expressed political opinions.” To ensure continued compliance, the FCA has requested senior leaders within financial firms to personally attest to their adherence to regulatory requirements and to confirm their confidence in ongoing compliance.

In related developments, U.S. regulators have been encouraging banks to bolster their operational resilience. The Office of the Comptroller of the Currency (OCC), in its “Semiannual Risk Perspective,” highlighted the need for banks to identify critical operations and core business lines, as well as to map out interdependencies within their organizations and with key third-party providers.

The OCC warned that the increasing interconnectedness within the financial industry amplifies the risk of widespread disruption if a single participant faces an outage. As PYMNTS noted, this “domino effect” could see a FinTech or other partner experiencing a cyberattack or operational failure, potentially triggering a ripple effect that impacts the broader banking system.