Traditional Banks Can Exclude Some Individuals
Between 2007 and 2010, the Government provided £1,162bn to support banks to ensure the financial stability of the UK banking industry. This later become known as the banking crisis.
Understandably, the use of taxpayers money to bail out these big banks upset and angered consumers who generally had no option to enter into risky credit borrowing and lending with the big banks within the UK.
However, in the years following, mainstream banks still created products which financially excluded some of the taxpayers who helped to bail them out.
People with poor credit records, bankruptcy and those with no proof of address struggled to open up suitable banking accounts which met their needs, which opened the doors for alternative banking solutions to join the industry.
Alternatives to Traditional Banking
The need for more choice and alternative options has resulted in huge growth over the last five years and brought many changes to the traditional “one-size-fits-all” industry. These revolutionary changes have allowed customers, previously financially excluded or not, to take back control of their banking needs and move away from traditional banking institutions.
Alternatives such as e-money accounts, challenger banks and neobanks have opened their doors to customers looking to change and modernise to how people manage their money.
Most people within the UK would have heard of Monzo or Atom Bank by now – one of the first group of challenger banks to have an impact on the modern-day financial market backed by high profile investors and financiers.
What Makes the Newcomers any Different?
These new banking providers are technology-driven, offering greater functionality than the traditional banks we’re accustomed to, with many offering fabulous additional benefits such as money management tools or instant rewards.
These providers genuinely want your custom, rather than assuming they deserve it, and they continue to develop and create innovative solutions for the benefit of the consumer. That’s probably why the UK prepaid industry is growing 27% year-on-year.
Prepaid Accounts & Prepaid Debit Cards
Still not convinced by the recent flood of challenger and Neo banks to the UK market? How about banking without a, well, bank? Yep – you can do that too.
Nowadays, people aren’t resigned to one of a few banking institutions within the UK as more fintech banking solutions emerge through the financial landscape. Many of these options available will provide accounts to those with a poor credit score or don’t have any proof of address.
Alternative Accounts with Suits Me®
For example, here at Suits Me®, we pride ourself on working to eradicate financial exclusion, by giving our customers the service and functionality of a traditional current account that they deserve, regardless of their background, financial position or personal circumstances but without the hidden costs of so-called ‘free’ personal accounts.
Our prepaid accounts come with a contactless debit card, access to an online account, and our mobile app – where account holders can safely and securely manage their money. We also offer an exclusive cashback reward programme.