Bank account inclusion continues to improve

29/10/2009

New figures from the British Bankers' Association (BBA) have shown that financial inclusion in the UK is on the rise.

According to the industry group, 107,000 basic-functionality bank accounts accessible through post offices were opened during April-June 2009.

This means that a total of 7.9 million customers can use the Post Office to access their bank account.

Included in this total are the 3.5 million basic functionality accounts previously only accessible through the banks themselves, which are now covered by post offices.

This is thanks to an agreement made between the Post Office and HBOS in 2008.

David Dooks, BBA statistics director, said that the latest quarterly rise was smaller than had previously been measured.

"[This] was not unexpected, because this particular customer market has matured in recent years and basic bank accounts are no longer an automatic progression from other accounts, for example those opened for children or by people from overseas working temporarily in the UK," he added.

"Having a bank account is important for many reasons and people with money problems should have some choice," EuroDebt director Kevin Still commented.

"We have made this process very easy with a prepaid current account that is available to all UK residents without the requirement for a credit check. Clients on a Debt Management Plan, an IVA or Bankrupt are all eligible. There is a low flat monthly fee and no penalty charges for failed direct debits. We offer full on-line banking services with a prepaid card that disposable income is swept on to.

"Our aim is to ensure that there is no financial exclusion and that consumers can make purchases and payments at the lowest rates, which is important for people with money problems."

Data released by the Financial Inclusion Task Force earlier this week showed that the number of Britons without a bank account has halved from two million to 900,000 over the past five years.

Tags; Debt Management and Banking, Young Family Finances, Retirement Money Problems,

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