The FCA's Initial Data Exercise on Bank Account Access and Closures

The Financial Conduct Authority (FCA) has released the results of its initial data exercise on bank account access and closures. This report is intended to better understand the reasons that banks, building societies, and payment firms give for closing, suspending, or declining an account. In most cases, it was found that accounts were closed due to inactivity or concerns about financial crime. The FCA has expressed the need to continue its work with firms to fully verify the data and ensure it is meeting customer outcomes. It is also looking into whether all individuals, businesses, and organisations should have the right to an account and if robust digital identities could help in this regard. The FCA has highlighted actions they will take if any firm does not comply with consumer duty and expectations. They have also called on Government to consider how to balance access to bank accounts with preventing financial crime. Finally, the FCA has published an international overview of account closures.