Bank Services: Community Development
The question
To ask the Chancellor of the Exchequer, what steps her Department is taking to ensure that UK banks provide accessible banking services for community groups that are not registered charities.
Answered by Lucy Rigby
Community groups make a valuable contribution across the country, and it is important that they can access suitable banking services.
However, decisions about what products are offered, and to whom, remain commercial decisions for banks and building societies, due to differences in legal status, risk, and regulation. This also necessitates that decisions concerning the provision of products, including account charges, are largely commercial decisions for these institutions.
At the Government’s encouragement, UK Finance, working with banks and charity representative groups, have produced the Voluntary Organisation Banking Guide, which supports charities and other community groups in accessing banking services. This includes an easy-to-use account finder tool for charities and community groups, and includes information on fees.
It is important that community groups consider a range of providers for their banking needs, as this encourages competition, improves choice, and helps keep prices competitive.
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