The banking trade body UK Finance has launched a new website aimed at supporting charities with access to banking services.
The website, which went live today, will provide tailored guidance to support voluntary organisations with opening and managing their bank accounts.
It will include a step-by-step digital guide and will answer charities’ frequently asked questions about opening and managing bank accounts, UK Finance said.
The trade body, which represents more than 300 banking and finance firms, said it worked with charitable organisations, members and regulators to develop the digital guide to improve how these accounts are opened and run.
The website will also include a free account finder tool to help organisations in the voluntary sector find the best account for their needs.
The online guide is the final step of a project run by UK Finance to deepen understanding of the specific issues felt by charity bank account customers.
The project began with workshops with charity bank account customers, followed by interviews to uncover common challenges in opening an account and understanding the regulatory process requirements which financial services are subject to.
It comes just months after the Charity Commission found that nearly half of charity trustees said that their organisation had experienced poor service from their banks last year.
At the time, the regulator warned that inadequate banking services could lead to unsafe banking and financial practices such as using trustees’ personal bank accounts.
Third Sector has reported on a number of charities that have experienced banking difficulties, including The London Chamber Orchestra, which said that it suffered severe staff losses after it was unable to pay employees due to banking issues.
Paul Latham, director of communications and policy at the Charity Commission, said the online tool was a welcome step and was recommended reading for those setting up a new charity or having issues with banking services.
“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 is not 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.”
David Raw, managing director of commercial finance at UK Finance, said: “Charity, voluntary and community groups contribute a huge amount to our society. From local sports and hobby clubs to national charities, these organisations 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.
“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.”
