Under new rules proposed by the Financial Conduct Authority (FCA), banks and building societies would be forced to assess the impact of changes to their services, including branch closures and opening times.

The UK financial watchdog is also consulting on the requirement for “detailed analysis” on how firms evaluate the effect of converting ATMs and the reduction of services.

The regulator claims that some banks are not doing enough to understand the impact of changes on their customers.

“We expect firms to continue to offer easy and accessible banking services to their customers, and this is even more important as the country faces a cost-of-living crisis,” said Sheldon Mills, executive director of consumers and competition, FCA. “We saw firms successfully do this and support consumers through the pandemic, and this standard needs to continue with firms really thinking about their customers, especially those in vulnerable circumstances, and ensuring they continue to meet their needs.”

The FCA says that communicating with local charities and councils would help financial institutions recognise the wider impact of service changes.

The proposed update to the guidance is the latest step the FCA has taken to protect access to banking services, which includes accessing cash at branches.

The government has recently confirmed that the authority will have powers to make sure cash remains accessible.   

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