The UK’s main banks have agreed with the Treasury to do more to help basic bank account customers and promote financial inclusion.

The BBA, working closely with the nine largest personal current account providers, has developed a new industry standard for basic bank accounts, aimed at widening the range of banking services for vulnerable customers while preventing the risk of unforeseen fees and charges.

The revised account is targeted at people who do not currently have a bank account or might not be able to open a standard account, customers looking to switch providers, or those in financial difficulty.

The new basic bank account will have a full range of payments and information features, including a debit card and access online, in branches and via the Post Office. From September 2016, the account will be available to EU residents, in line with the Payment Accounts Directive.

The participating banks have agreed to provide the account free of all charges to ensure that customers who inadvertently slip into the red do not pay for doing so.

The BBA’s chief executive, Anthony Browne, said: “Banks in the UK lead the way when it comes to providing accessible banking, and take their financial inclusion responsibilities seriously – the proportion of the population with no account at all is less than a third of that in the US and Europe.

“Now we will be helping even more people access banking services than ever before, and these basic accounts will make it easier for more people to manage their money. We are delighted that the banks will be offering this service to those who will really benefit.”

There are now 9.3 million basic bank accounts in the UK, according to the BBA. The current industry agreement on these accounts came into force in 2004, and since then the number of adults living in unbanked households has fallen by over 50 per cent and now represents less than 2 per cent of the population.

It is estimated that there are 2.5 billion unbanked individuals globally, and in the EU, around 30 million people who would like a bank account but do not have one.

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