Banking trade association UK Finance has today launched a website to support charities opening and managing bank accounts after many reported experiencing difficulties with financial services.
UK Finance announced plans for a guide earlier this year after 42% of charity trustees responded to a survey saying they had experienced bad service from banks in the previous 12 months.
The new website features a free account finder tool, step-by-step guide and frequently asked questions to help charities find the best account for their needs.
UK Finance said the site launch is the final step of its project aiming “to deepen understanding of the specific issues felt by charity bank account customers”.
“The site provides voluntary sector organisations tailored guidance to help work out their organisation structure, decide on their banking needs, and ensure they have everything they need to open and maintain their account,” it said.
‘Essential charities can access banking services as and when needed’
David Raw, managing director of commercial finance at UK Finance, said charities and community groups are “a key part of our social fabric”.
“People who run these organisations have a huge amount to think about and so we want to make the process of opening and managing a bank account as clear and straightforward as possible,” he said.
“That’s why we’ve worked with representatives from the sector, along with regulators and policymakers, to develop this guide to help improve the experience of opening and running bank accounts.”
Tulip Siddiq, economic secretary to the Treasury, said: “The contribution that charities and community groups make across the country is invaluable, and it’s essential they can access banking services as and when they need them.
“Banks and charities came together to make this guide and I hope it can be a helpful resource to support the valuable work of the voluntary sector.”
Charity Commission: ‘New tool is a welcome step’
Paul Latham, director of communications and policy at the Charity Commission, said the new online tool is a “welcome step to help charities engage successfully with their bank”.
“But we continue to hear from charity trustees struggling to obtain bank accounts, experiencing poor customer service from their bank, or having their services suddenly suspended so they can’t pay staff or suppliers,” he said.
“This isn’t good enough, and will only be solved by banks themselves taking tangible action to improve their processes and customer services and better serve their charity customers.
“Charities provide vital support to people across the country. To allow them to continue this work, banks must support them in return, by allowing them to keep their funds properly and transparently managed.”
CFG: ‘We hope it will bridge the gap’
Clare Mills, Charity Finance Group’s deputy CEO, said: “Work to improve access to banking services has been a continuous part of CFG’s work for the past few years and it’s great to see this new site being launched.
“Charities and charity infrastructure bodies have donated significant time and resources to help shape the structure and content, to ensure users will be able to find helpful information.
“We very much hope it’s of great use and that banks offering services for charities will direct their own staff towards the site, to improve their knowledge of the huge range of charitable organisations and their needs.
“In so many cases, the difficulties that charities encounter stem from a lack of understanding – sometimes on both sides. By bridging this gap, charities can potentially save time and resources which could be directed towards their core activities.”
