Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to ensure the safety and accessibility of money stored in regulated neobanks in the UK.

It is vital customers are able to trust their money is secure and accessible, and the government takes the safety of customers' money very seriously.

Eligible customers of firms authorised to take deposits by the Prudential Regulation Authority are protected by the Financial Services Compensation Scheme (FSCS). Eligible deposits are protected up to £120,000 if the firm fails. This protection applies equally to banks providing services entirely digitally. Some digital financial firms do not accept deposits and instead issue electronic money. Electronic money is not protected by the FSCS, but firms are subject to safeguarding requirements designed to protect customer funds.

In May 2026, the FCA introduced new rules which supplement the safeguarding requirements in the payments services and e-money regulations. This put in place requirements for payment and electronic money institutions to submit monthly reports, conduct daily checks to ensure the right level of money is being safeguarded, maintain resolution packs and, where subject to audit requirements, undertake annual safeguarding audits by qualified auditors for electronic money and payment services.