Asked by: Lord Birt (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to review the effectiveness of the provision of high street banking facilities and services (1) for all holders of bank accounts, (2) for those with disabilities, and (3) for those without access to the internet.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Government believes that everyone, wherever they live, should have appropriate access to banking services. Nonetheless, decisions on opening and closing high street banking facilities are a commercial issue for banks and building societies.
Guidance from the Financial Conduct Authority (FCA) sets out its expectation of firms when they are deciding to close their branches or free-to-use ATMs. Firms are expected to carefully consider the impact of planned branch closures on the everyday banking and cash access needs of their customers and consider possible alternative access arrangements. This ensures that the implementation of closure decisions is undertaken in a way that treats customers fairly.
UK banks’ and building societies’ treatment of their customers is governed by the Financial Conduct Authority (FCA) in its Principles for Businesses. This includes a general requirement for firms to provide a prompt, efficient and fair service to all of their customers. The FCA’s Handbook requires firms to identify particularly vulnerable customers, and to deal with such customers appropriately. This includes older or disabled people, and those who may lack the capacity to manage their account on their own. In addition, like all service providers, banks and building societies are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services.
Those without access to the internet can access banking services via telephone banking, and the Post Office. The Post Office Banking Framework allows 99% of personal banking and 95% of business banking customers to deposit cheques, check their balance and withdraw and deposit cash at 11,500 Post Office branches in the UK. New shared bank hubs are also being piloted, providing basic banking services and dedicated space where community bankers from major banks can meet customers of that bank.
Asked by: Emma Hardy (Labour - Kingston upon Hull West and Hessle)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if his Department will make an assessment of the potential challenges people with disabilities experience when accessing online banking services.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
In 2021, 86% of UK customers used a form of remote banking such as telephone banking, a banking app or online banking services. UK banking customers have never had more choice in how they fit their banking into their everyday lives.
It is important that those with a characteristic of vulnerability, such as people with disabilities, have appropriate access to banking services. The Financial Conduct Authority (FCA) has guidance for firms on the fair treatment of vulnerable customers, setting out a number of best practices. The guidance explores, among other things, how firms can understand the needs of vulnerable customers and provide targeted services for this cohort. Examples range from staff having the skills and capability to recognise and respond to the needs of vulnerable customers, to product and service design, customer services and communication. In addition, like all service providers, banks and building societies are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services.
Some people with disabilities may find online banking services preferable and easier to use, however the Government recognises that some people may continue to prefer to carry out their banking in-person. In light of closing bank branches, the Government cannot reverse the changes in the market and in customer behaviour; nor can it determine firms’ commercial strategies in response to those changes.
Guidance from the FCA sets out its expectation of banks and building societies when they are deciding to close their branches or free-to-use ATMs. Firms are expected to carefully consider the impact of a planned closure on their customers’ everyday banking and cash access needs and consider possible alternative access arrangements. This Guidance has recently been strengthened to ensure firms pay closer attention to the needs of their consumers, particularly those in vulnerable circumstances. Alternative forms of banking may include by telephone or via the Post Office, which allows 99% of personal banking and 95% of business customers to carry out their everyday banking at 11,500 Post Office branches across the UK.
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Government is taking to help improve access to alternative banking and payment options for (a) the elderly, (b) people with disabilities and (c) people with visual impairments.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government wants to ensure that people, including those with characteristics of vulnerability, have appropriate access to banking services, which includes payment services. The Government works closely together with regulators and stakeholders from the public, private and third sectors.
The way consumers interact with their banking is changing, with more consumers opting for the convenience, speed and security of digital services. In 2020, 83% of UK adults used contactless payments, 72% used online banking and 54% used mobile banking, according to UK Finance. In addition to bank branch services, alternative options to access everyday banking services can be via telephone banking, through digital means such as mobile or online banking and via the Post Office. The Post Office Banking Framework allows 99% of personal banking and 95% of business customers to deposit cheques, check their balance and withdraw and deposit cash at 11,500 Post Office branches across the UK.
UK banks’ and building societies’ treatment of their customers is governed by the Financial Conduct Authority (FCA) in its Principles for Businesses. This includes a general requirement for firms to provide a prompt, efficient and fair service to all of their customers. The FCA’s Handbook requires firms to identify customers who exhibit characteristics of vulnerability, and to deal with such customers appropriately. In February 2021, the FCA also published guidance for firms on the fair treatment of vulnerable customers, setting out a number of best practices.
In addition, like all service providers, banks and building societies are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services.
Asked by: Lord Browne of Belmont (Democratic Unionist Party - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the impact of the digitalisation of banking and billing services on elderly people.
Answered by Lord Agnew of Oulton
The retail sector is evolving, as more consumers and businesses opt for the convenience, security, and speed of digital payments and digital banking.
While these innovations have brought considerable benefits to many consumers, the Government recognises that some people continue to prefer to access their banking and payments through more traditional channels. Though the Government does not make direct assessments of the impact of digitalisation of banking and billing services on the elderly, it firmly believes that it is vital to ensure that all customers, including the elderly, have suitable access to banking and bill payment services.
That is why UK banks and building societies are required to provide a prompt, efficient and fair service to all of their customers, including the elderly, as set out in the Financial Conduct Authority’s (FCA) Principles of Business. For example, if a customer did not have access to the internet, then the FCA would expect the customers’ bank to provide paper bank statements to them instead.
For billing services, the energy regulator Ofgem requires energy suppliers to maintain a Priority Services Register of customers in vulnerable circumstances, which includes customers of pensionable age. A range of protections are available to these customers, including the provision of account and bill information in an accessible format.
Asked by: Lord Sikka (Labour - Life peer)
Question to the Attorney General:
To ask Her Majesty's Government, how many (1) bank directors, (2) insolvency practitioners, (3) estate agents, (4) lawyers, and (5) accountants, have been prosecuted since the publication of the report by the All Party Parliamentary Group on Fair Business Banking Project Lord Turnbull report, published on 22 June 2018.
Answered by Lord Stewart of Dirleton - Advocate General for Scotland
The Crown Prosecution Service (‘CPS’) do not have a mechanism for recording the profession of defendants and so are unable to provide the data requested.
The CPS continue to play an important role in prosecuting professionals, whether they be professionals who have used their position to commit crimes or whether they have enabled others to commit crimes. This includes bank directors, insolvency practitioners, estate agents, lawyers, and accountants.
It is important that alongside prosecuting professional individuals, prosecutors should have the right tools to pursue and prosecute corporate bodies. In November last year, this government announced the Law Commission Project on Corporate Criminal Liability, which will be conducted over a 12-month period with a view to setting out potential options for reform.
The above answer represents the position for England and Wales only, and not for Scotland, for which the data, if available, would be held by the Crown Office and Procurator Fiscal Service.
Asked by: Grahame Morris (Labour - Easington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will introduce a banking service standard to prohibit the closure of the last bank branch in a community.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The decision to maintain a presence on the high street is a commercial one for the management team of a bank and Government does not intervene in those decisions.
The retail financial landscape is changing, as more consumers and businesses opt for the convenience, security, and speed of digital payments and digital banking. Banking service providers need to balance customer interests, market competition, and other commercial factors when considering their strategy.
However, the Government also firmly believes that the impact of branch closures should be understood, considered, and mitigated where possible so that all customers, wherever they live, continue to have access to over-the-counter banking services if they wish to use them. That’s why the Government supports the industry’s Access to Banking Standard which helps customers to understand the options they have locally to continue to access banking services, including specialist assistance for customers who need more help.
Alternative options include the Post Office, which allows 95% of business and 99% of personal banking customers to carry out their everyday banking at 11,500 Post Office branches across the UK.
In September 2020, the Financial Conduct Authority (FCA) published guidance setting out their expectation of firms when they are deciding whether and how to reduce their physical branches or the number of free to use ATMs. Firms are expected to carefully consider the impact of a planned closure on their customers’ everyday banking and cash access needs, and other relevant branch services and consider possible alternative access arrangements. This will ensure the implementation of closure decisions is done in a way that treats customers fairly.
Further to this, the FCA recently consulted on guidance for firms’ on the fair treatment of vulnerable customers, including those who are digitally excluded or have low digital skills. This consultation closed on 30 September and the FCA are currently considering the responses.
Protecting vulnerable consumers is a key priority for the FCA. While many firms have made significant progress in how they treat vulnerable consumers, HM Treasury and the FCA want to see the fair treatment of vulnerable consumers being taken seriously by all firms so that such customers receive consistently fair treatment. HM Treasury continues to work with firms and the FCA to ensure that the needs of vulnerable customers are met.
Asked by: Grahame Morris (Labour - Easington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to protect community access to banking facilities for vulnerable people unable to use online banking.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The decision to maintain a presence on the high street is a commercial one for the management team of a bank and Government does not intervene in those decisions.
The retail financial landscape is changing, as more consumers and businesses opt for the convenience, security, and speed of digital payments and digital banking. Banking service providers need to balance customer interests, market competition, and other commercial factors when considering their strategy.
However, the Government also firmly believes that the impact of branch closures should be understood, considered, and mitigated where possible so that all customers, wherever they live, continue to have access to over-the-counter banking services if they wish to use them. That’s why the Government supports the industry’s Access to Banking Standard which helps customers to understand the options they have locally to continue to access banking services, including specialist assistance for customers who need more help.
Alternative options include the Post Office, which allows 95% of business and 99% of personal banking customers to carry out their everyday banking at 11,500 Post Office branches across the UK.
In September 2020, the Financial Conduct Authority (FCA) published guidance setting out their expectation of firms when they are deciding whether and how to reduce their physical branches or the number of free to use ATMs. Firms are expected to carefully consider the impact of a planned closure on their customers’ everyday banking and cash access needs, and other relevant branch services and consider possible alternative access arrangements. This will ensure the implementation of closure decisions is done in a way that treats customers fairly.
Further to this, the FCA recently consulted on guidance for firms’ on the fair treatment of vulnerable customers, including those who are digitally excluded or have low digital skills. This consultation closed on 30 September and the FCA are currently considering the responses.
Protecting vulnerable consumers is a key priority for the FCA. While many firms have made significant progress in how they treat vulnerable consumers, HM Treasury and the FCA want to see the fair treatment of vulnerable consumers being taken seriously by all firms so that such customers receive consistently fair treatment. HM Treasury continues to work with firms and the FCA to ensure that the needs of vulnerable customers are met.
Asked by: Wera Hobhouse (Liberal Democrat - Bath)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason a bank is not required to give an explanation before closing a customer's account.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In most circumstances the provision of a bank’s services are a commercial decision for the bank. The terms and conditions of the contract between the two parties govern the termination of that contract, and the Government does not intervene in these decisions. Although the Treasury sets the legal framework for the regulation of financial services it does not have investigative or prosecuting powers of its own.
In line with international standards on money laundering and counter terrorist financing set by the Financial Action Taskforce, banks are expected to apply risk-sensitive customer due diligence measures when considering the services they provide to current or potential customers. Banks should then make a decision on whether and how to provide banking services on the basis of an assessment of each customer’s circumstances. The decision of whether to provide banking services
may, of course, be informed by more than just the bank’s risk appetite and may include an assessment of profitability or other commercial factors.
The treatment of customers by UK firms which are regulated by the Financial Conduct Authority (FCA) is governed by its Principles of Business. This includes a general requirement for firms to provide a prompt, efficient and fair service to all their customers.
Asked by: Charles Walker (Conservative - Broxbourne)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will issue guidance to (a) banks and (b) other financial institutions on the timely provision of information to Executors seeking to wind-up estates for probate during the covid-19 outbreak; and if he will make a statement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Throughout the COVID-19 pandemic, the Government, alongside the financial regulators, has been working closely with the financial services industry to ensure that individuals and businesses have the support they need. If anyone has concerns or questions about their banking, including the administration around bereavement, we urge them to speak to their provider. Frontline staff in banks, building societies and credit unions are working tirelessly to deal with a significant volume of customer enquiries.
The treatment of customers by UK firms which are regulated by the Financial Conduct Authority (FCA) is governed by its Principles of Business. This includes a general requirement for firms to provide a prompt, efficient and fair service to all of their customers, including those who have recently suffered a bereavement. The Government is also supportive of previous industry efforts to improve handling of these sensitive cases, including the implementation of the British Bankers’ Association’s (now known as UK Finance) Bereavement Principles. These Principles include a commitment from firms to provide support to meet individuals’ needs throughout the bereavement process and to work to resolve everything as quickly and simply as possible.
The Government will continue to work with the FCA and industry to understand how they are handling bereavement processes and policies around probate in the current context.
Asked by: Chris Ruane (Labour - Vale of Clwyd)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of establishing a financial services tribunal.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises how important it is for small businesses to have access to the mechanisms they need to settle disputes fairly, should they ever need to make a complaint about their bank.
The Government welcomes the FCA’s policy statement on widening SMEs’ access to the Financial Ombudsman Service, as well as the work being conducted in this area by UK Finance and the All Party Parliamentary Group on Fair Business Banking, and will consider their conclusions this Autumn.