Financial inclusion continues

There are well over 6 million ‘basic functionality’ accounts being used by UK customers, according to figures from the British Bankers’ Association (BBA).

Since Universal Banking began in April 2003, 2.4 million post office accessible accounts have been opened and more than ¼ million have been upgraded. BBA research has shown that over half of all customers with basic bank accounts had no previous banking relationship. The first quarter of this year saw an additional 164,604 accounts opened net (ie accounts opened less accounts closed) and 31,334 existing accounts upgraded.

Before Universal Banking, banks also offered other basic-functionality accounts, accessible through branches, mobile branches and cash machines. Since April 2003, a net total of 674,277 such accounts have been opened and 202,394 upgraded. There are currently 3.8 million of these accounts in operation.

Angela Knight CBE, chief executive of the BBA, said: “Banks continue to welcome customers and to offer a wide range of accounts to suit everyone. The number of basic bank accounts continues to grow and we are seeing significant numbers of new accounts opened. When people have built up a banking relationship they oftenupgrade to accounts with more features.”