A new agreement on how deposit-takers communicate about FSCS protection has launched today. This will enhance consumer awareness of the Financial Services Compensation Scheme’s (FSCS) guarantee for deposits in banks and building societies and reassure them that their money is protected under the scheme no matter how they choose to bank. This protects deposits up to £85,000 per person, per firm.
Under Prudential Regulation Authority (PRA) regulations, banks and building societies are already required to display FSCS stickers in branches and on posters and leaflets. However, after a successful collaboration, this new agreement, supported by UK Finance and the Building Societies Association (BSA), goes much further to cover the following consumer channels and documents:
- Mobile banking apps
- Customer information sheets
This agreement means banks and building societies will use the FSCS badge in a consistent way across these channels which will also include advertising. This will help to make people more aware of the protection FSCS provides for their deposits and savings.
Banks and building societies have 18 months to implement this agreement. The final guidance is being sent out to banks and building societies today detailing the new agreement and is already being rolled out by individual bank and building societies according to their own internal timescales.
Mark Neale, FSCS Chief Executive, said: “I am extremely pleased that UK Finance, the BSA, and their members have committed to including the “FSCS protected” badge on their websites, apps and information sheets. FSCS continues to protect people if their bank, building society or credit union fails and it is important that consumers are aware of this and feel reassured. I also hope many firms will also include FSCS on their broadcast marketing, outdoor advertising and other communications channels. Research from earlier this year showed that almost two-thirds of respondents felt reassured knowing that FSCS protects their money.”
Stephen Jones, UK Finance CEO, said: “Implementing this FSCS badge agreement will further boost customer awareness of deposit protection across the UK retail banking sector. The industry works in partnership with FSCS to promote its protection and knows the reassurance this provides to customers. We want to ensure that depositors understand that their money is protected which is why we support the FSCS in building awareness of the vital protection it provides.”
Robin Fieth, BSA CEO, said: “This agreement demonstrates building societies’ commitment to their members. We know the FSCS plays a valuable role in consumer confidence and we support them in that. This new agreement will enable customers not only to feel reassured that their money is safe but also enable them to make informed decisions on where they keep their savings.”