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New Bank-style Account “Would Help” Financially Excluded

bank account


·        Bank customers unhappy with online security and service issues 

·        Fintech company Pockit builds challenger bank for underserved customers

Nearly half (47%) of consumers would welcome the chance to use a ‘bank-style’ account, which would enable them to make and receive online payments but would not offer an overdraft facility, new research* from Fintech company Pockit shows.

Pockit’s study shows that consumers would use this type of account both as an alternative to their existing current account or because they are financially excluded.  Research shows nearly one in ten (9%) customers have seen their application to a traditional bank for a current account with no overdraft facility turned down over the last two years,  making it difficult for them to access the savings available from using direct debit facilities and shopping online.

The Financial Inclusion Commission estimates two million people are without bank accounts in the UK, forcing many to rely on cash – Pockit’s research shows around 6% of adults say that relying on cash means they miss out on the discounts available online and through direct debit.

However, it’s not just the financially excluded that would welcome a bank-style account – Pockit’s research shows many customers of traditional banks are dissatisfied with the level of service they currently receive.

Two out of five (38%) high street bank customers admitted they are worried about using their bank account for online transactions while one in six (17%) have experienced problems with direct debit payments.  A further 12% of customers have fallen victim to fraud with money leaving their account while another 10% have experienced suspicious activity.

With three-quarters (75%) of consumers welcoming more competition in the current account market, Pockit has developed an alternative, no-nonsense approach to traditional banking.

The Fintech company, which provides a secure account open to everyone that can be used to pay in wages or benefits as well as to withdraw cash at ATMs, is expanding its service to offer account numbers, contactless cards and Direct Debits, during the coming months. It is particularly relevant for people who do not have bank accounts but can also help those who want additional accounts to use online or to help manage their cash more effectively.

Recent research has shown that traditional banks’ application processes and regulation are among the biggest barriers to financial inclusion, costing the financially excluded up to £1,300** a year and stopping millions from benefiting from improved budgeting and saving.

Virraj Jatania, CEO, and Co-Founder of Pockit said: “Consumers who’ve been rejected by traditional banks or poorly treated by them often end up outside the financial mainstream and having to rely on cash. Being financially excluded means missing out on the savings available through direct debits and online shopping  .

“The no-nonsense bank-style account that we have developed is an ideal solution not only for the financially excluded but also for customers of traditional banks who are unhappy with their existing current account.”

Setting up a Pockit account takes two minutes and costs 99p and customers can fund accounts online or from a mobile or by cash at over 28,000 locations across the UK, as well as by debit card and bank transfer. For more details, go to www.pockit.com.

About Pockit

Fintech group Pockit, founded in 2012, is building a new type of challenger bank aimed at helping the growing numbers of people who are not being served by the traditional banking sector. Currently it has over 60,000 customers with Pockit accounts and the business has processed over £40 million in the last year with more than a quarter of a million transactions taking place every month.

Hernaldo Turrillo
Hernaldo Turrillo is a writer and author specialised in innovation, AI, DLT, SMEs, trading, investing and new trends in technology and business. He has been working for ztudium group since 2017. He is the editor of openbusinesscouncil.org, tradersdna.com, hedgethink.com, and writes regularly for intelligenthq.com, socialmediacouncil.eu. Hernaldo was born in Spain and finally settled in London, United Kingdom, after a few years of personal growth. Hernaldo finished his Journalism bachelor degree in the University of Seville, Spain, and began working as reporter in the newspaper, Europa Sur, writing about Politics and Society. He also worked as community manager and marketing advisor in Los Barrios, Spain. Innovation, technology, politics and economy are his main interests, with special focus on new trends and ethical projects. He enjoys finding himself getting lost in words, explaining what he understands from the world and helping others. Besides a journalist, he is also a thinker and proactive in digital transformation strategies. Knowledge and ideas have no limits.

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