Memorandum submitted by Abbey
BASIC BANK
ACCOUNTS
I understand that, as part of its inquiry into
Financial Inclusion, the Treasury Committee is taking a keen interest
in basic banking and the role that banks are playing in providing
basic accounts. I therefore wanted to provide you with an update
on Abbey's provision of basic accounts:
— Our total stock of basic accounts
is currently 173,000.
— We currently open around 1,500 basic
accounts each week.
Abbey is also working to improve access to our
basic account. Improvements to literature have already been identified
and new branch display literature is currently being produced.
Training is being improved for new staff and refresher training
provided to existing staff, as well as communications being made
to all sales staff to highlight the importance of basic accounts.
Abbey recently allowed self-advocacy group Speak
Up access to its branches to film "An account for your benefits",
a DWP DVD that provides simple guidance to help people with learning
disabilities or language barriers understand how to open a basic
account. We have also engaged in discussions with the National
Consumer Council, and SAFE in order to understand more about their
findings on basic banking and the needs of basic account customers,
and we intend to do the same with Citizen's Advice.
MONEY ADVICE,
FINANCIAL CAPABILITY
AND AFFORDABLE
CREDIT
In addition to providing basic accounts, Abbey
supports financial inclusion in a number of other ways.
One of the priorities of our Charitable Trust
is helping disadvantaged people take control of their money and
develop the confidence to make informed choices about their finances.
In 2006 we plan to give around £200,000 in major donations
to charities running projects in the money advice field, for example,
Citizens Advice. In addition, our Community Partnership Groups
and branches can also recommend local donations that fit with
this priority.
Abbey also runs volunteering programmes that
encourage employees to devote time to charitable or voluntary
work, for which they receive up to 35 hours of matched time from
the company per year. One of our most successful volunteering
programmes is the Number Partners scheme, whereby employees assist
primary school children to improve their confidence with mathematics.
Finally, Abbey is currently considering what
we can do to contribute to the Government's aim of increasing
access to affordable credit.
January 2006
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