Subscribe now & get informed!
Browse by Categories
News Details
* Basic bank accounts helpWelcoming today's Treasury Select Committee's report on financial inclusion for individuals, the BBA pledged to continue its work on practical plans to lift the least well-off on to the savings ladder.
BBA Chief Executive Angela Knight said:
"The Treasury Select Committee has asked how we encourage saving among those who have very little to set aside. Britain's banks are playing a key part in discussions to make this a reality."
"Key to all of this is the use of basic bank accounts, which now number nearly seven million. Around 50,000 new accounts are opened every month, and a further 10,000 each month upgrade to more sophisticated accounts."
Figures released today by the BBA show that since the start of so-called 'universal banking' in April 2003, 2.6 million post office-accessible accounts have been opened and more than ¼ million have been upgraded. More than half of all customers with basic bank accounts had no previous banking relationship: subsequently they can join the banking mainstream, using a wider range of services. The second quarter of this year saw an additional 151,534 accounts opened net (i.e. accounts opened less accounts closed) and 31,550 existing accounts upgraded.
Banks currently manage more than 3.8 million basic-functionality accounts, accessible through branches, mobile branches and cash machines.
The BBA also welcomes other proposals in the Treasury Select Committee's paper, including further strengthening the link between work on financial inclusion and financial capability. The banking industry is already actively involved in many of the key areas that the TSC is giving consideration to; either through piloting of initiatives, provision of data, engagement in policy development, product provision (basic bank accounts) and funding.