MHKs have again raised concerns about islanders facing challenges in accessing basic banking services, particularly those with poor credit scores.
Jason Moorhouse asked Dr Alex Allinson what assessment has been undertaken by the FSA in the last nine months on basic bank accounts for those with a poor credit score; and what requirements are in place on institutions to provide such.
The Treasury Minister acknowledged that unlike the UK, there is no statutory requirement for banks in the Isle of Man to provide basic bank accounts.
Mr Moorhouse also raised concerns about the impact this could have on people given the announcement that the MyCard system is to end.
Dr Allinson told Tynwald that major banks on the island do offer basic current accounts to those who can provide the necessary identification documents.
Benefits
He said: “In terms of the changes and reforms of the benefit system, Barclays, HSBC, the Isle of Man Bank, Lloyds and Santander have all confirmed that they can offer a basic current account to pretty much anyone who can provide KYC documents in the form of photographic ID and proof of address as well as their tax number.
“The basic account consists of a current account, no overdraft facility, a debit card that will not allow them to become overdrawn, no standing fees and no fees for cash withdrawals.”
Similarly, all banks provide free accounts to under 18s, which are free of charges and fees and won’t allow them to become overdrawn.
Dr Allinson also said he would speak to banks about access to accounts and any systemic problems within the sector for residents opening accounts.
Outside of Douglas
Ramsey MHK Lawrie Hooper raised the issue of accessing banking services for people who live outside the of capital.
The rise of online banking has led to a situation where other than the Isle of Man Bank, there will soon be no branches outside of Douglas.
Dr Allinson said: “Obviously, we have seen a contraction of the retail banking network on the Isle of Man over the last decade and that is of a concern.
“I would point out to him that, particularly in Ramsey, the closure of Lloyds Bank, agreement was made with the Isle of Man post office to provide some banking services at their counters, which would allow cash withdrawals and deposits to a certain degree.
“And I would like to see further use of these sort of facilities which have been rolled out in other areas of the island.
“I think the reality is that with the move to digital and online banking, there is increasingly both here and in other jurisdictions, a reduction in the number of high street banks, they are absolutely essential that we maintain facilities for those people who can’t use those online facilities.”
The Treasury Minister also added that some banks do offer outreach services where islanders can contact them to arrange a visit or some other facility.
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