The UK's National Consumer Council has challenged banks to make basic accounts more customer-friendly and issued a new three-step consumer blueprint for a basic account that works with the everyday lives of people on low incomes.
The National Consumer Council (NCC) stated that, while take-up of basic bank accounts has been good, half of account holders still manage their money in cash and are missing out on the real benefits of a bank account.
Among the key changes recommended by the NCC are easy and hassle-free account opening, with help from a new local basic bank account specialist to ensure compliance with access rules; and a standard set of account features for all basic accounts – including unrestricted branch counter access, extra paying-in options and a buffer zone to avoid unpaid bills and penalty charges.
Innovations to improve accounts – including face-to-face customer inductions, weekly text alerts, and ways to reduce the risk and impact of default changes – have also been recommended.
Our research shows that many people fail to take their first step in banking because they feel intimidated and unwanted by the banks. Others, who have an account, don’t use what it offers. They feel they can’t get the control, visibility and flexibility over their finances that come with managing their money in cash, Nicola O’Reilly, NCC senior policy advocate, explained.
By addressing the mismatch between what people want from banks and what they actually get, NCC’s blueprint will boost the consumer appeal of banks and basic accounts, she continued.