21 March 2007
Increasing numbers of consumers are choosing to get access to the financial system by setting up basic bank accounts, new research by the British Bankers' Association (BBA) shows.
According to the group, over 150,000 basic bank accounts were set up in the fourth quarter of 2006, designed to ensure account holders don't become overdrawn and keep on top of their financial commitments.
Since the launch of universal banking in 2003, some 2.26 million post office-accessible accounts have been opened, while more than 230,000 people have then gone on to upgrade their accounts.
Over half (51%) of customers who open up a basic account previously had not been tied to a financial provider in any capacity.
Angela Knight, incoming Chief Executive of the BBA, said: "Progress on the shared goal with HM Treasury is steady and sustained. Not only do we continue to see basic accounts attracting customers, but one in ten accounts are subsequently upgraded to accounts with a wider range of features."
Financial providers offering post office-accessible accounts include Abbey, Alliance & Leicester, Barclays Bank, Halifax and NatWest.