L9: Branch closures, debanking and ethics of retail banking Flashcards
what was the change in number of branches from 1984-2014
Fell by 51%
Impact on access to cash as a result of branch closures
Less ATM’s, with heavy users of cash affected. Mostly uneducated, old, unemployed, low household income, digitally excluded.
Who is most impacted by branch closures?
Disabled, elderly, rural, small business. 39% of over 65’s don’t online bank.
What was debanking scandal
Closure of accounts by banks who perceive account holders to pose financial, legal, regulatory or reputational risk. Coutts closed Nigel Farage’s account due to disagreement on political beliefs.
Response to debanking scandal
Banks must give clear explanations to customers if they decide to close account. Must give 90 days notice before closing.
what is a PEP
Politically exposed persons, may be more susceptible to bribery/corruption. banks able to refuse services if pose corruption risks.
example of Barclays debanking charities
Recently, Barclays have debanked lots of community bank accounts. Charities fight global issues, need access to funds. Regulators want easier process for setting up charity accounts
What are UK rights to have a bank account and what can banks do to stop people holding accounts
Everyone in UK has right to a basic bank account. Banks can decline additional services if suspicion of crime, or if individuals opinions dont align with bank values, up to bank.
