Basic accounts, Bank of Italy's warning: there are too few, access is unjustifiably impeded

The Bank of Italy's statement is a real reminder to banks, to Poste Italiane and to all other payment service providers:
the basic account
In Italy, the use of basic bank accounts is still limited, and supervisory activity has highlighted "numerous cases in which access to the product is unjustifiably hindered or discouraged." In Italy, the use of basic bank accounts among consumers is still limited, even compared to other European Union countries. 

The primary purpose of the basic account is to make essential payment services accessible to everyone, meeting simple money management needs. For this very reason, the law recognizes the right to obtain a basic account for consumers legally residing in the European Union who do not already have an account in Italy. Lower-income groups have the right to obtain one free of charge.  

Given the limited availability of the basic account in Italy and following in-depth studies, the Bank of Italy has published a communication to draw the attention of payment service providers, starting with banks and post offices, to the need to pay "maximum attention to the provision of the basic account, with the aim of promoting the widest possible access to essential payment services for consumers, especially the most vulnerable." The communication calls for "conduct that complies with regulations and is based on substantive fairness in customer relations, modifying existing rules, procedures, and practices to remove any potential obstacles to the provision of the account." 

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The Bank of Italy has identified a series of improper practices: the failure to include the basic account in the product catalog or the incompleteness of the essential services associated with it; shortcomings in internal regulations (for example, regarding product characteristics and target customers), transparency documentation, and customer support; poor product knowledge among network staff and failure to promote the account to vulnerable customers; unjustified resistance to opening a basic account for potentially eligible applicants (for example, non-residents legally residing in the European Union, individuals generally classified as high-risk for money laundering, and individuals with precarious financial and financial circumstances); limitations in IT procedures that prevent account opening for customers with legitimate documents, even if different from those ordinarily handled (for example, a temporary, non-alphanumeric tax code or a residence permit application receipt). 

Reports from consumers and trade associations also highlight difficulties in opening a basic account, a lack of transparency regarding the reasons for refusal, and the offer of more expensive alternative products to customers. To ensure consumers' full right to a basic account under current legislation, the Bank of Italy calls on payment service providers to adapt their internal regulations, procedures, offering methods, and controls to overcome any obstacles that might limit access to this type of account.  

The Bank of Italy requests clarification that the obligation to offer a basic account extends to consumers legally residing not only in Italy, but also throughout the European Union, including the homeless, refugees, and asylum seekers. It should be clarified that general considerations related to the applicant's personal and financial situation cannot justify refusal to open a basic account, but must be considered when determining eligibility for the benefits provided for the account. It should be clarified that, as required by legislation to combat money laundering and terrorist financing, assessments of relevant aspects in this area must be conducted on a case-by-case basis, proportionately, and taking into account the characteristics of the individual consumer and the specific expected transactions. Such assessments must not be based on automatic decisions or lead to refusals based solely on the customer's membership in categories generally considered higher risk. A basic account should be offered whenever it is fully consistent with the consumer's financial needs or when particular economic vulnerability emerges. the basic account must always be presented to customers, even in the case of offers of alternative payment accounts also intended to satisfy basic needs, highlighting the different conditions; 

Via Nazionale requests that applications and IT systems be adapted to handle non-standard information and documents (for example, a temporary, non-alphanumeric tax code or residence permit application receipt) to support requests to open a basic account; that procedures be implemented to ensure timely notification to consumers of the failure to open an account, specifying the reasons for the refusal (except for exceptions related to public order, public safety, and anti-money laundering) and the possibility of contacting the Bank of Italy or the Banking and Financial Ombudsman to protect their rights; that a structured process be ensured for detecting, classifying, and managing complaints and other signs of difficulty in accessing a basic account, including cases of failure to open an account or customer withdrawal during the investigation, to identify any recurring procedural, IT, documentary, or application issues and promptly implement the necessary corrective measures; periodic information flows to corporate bodies regarding the placement of the basic account are foreseen, including evidence of any customer complaints, problems encountered and related remedial actions; 

Bankitalia requests that the product be specifically and adequately publicized, highlighting its free nature for vulnerable customers, on operators' websites, through digital channels (e.g., apps), and in public places (e.g., by posting notices). Training programs be developed for sales network staff on the features of the basic account and the offering methods required by internal regulations, as well as the minimum service standards to be guaranteed to vulnerable customers. The Bank of Italy recommends evaluating the possibility, with a view to substantially protecting vulnerable customers, of offering account holders entitled to the free basic account the opportunity to switch to this product at no additional cost. These consumers must be adequately informed about the features of the basic account and the effects of the switch on their existing relationship and the services originally used (for example, the need to close the previous account and open a new one, with a different contract and IBAN, and possibly with different features). 

Payment service providers' control functions must schedule periodic checks to ensure the substantive correctness of sales personnel's conduct, the adequacy of procedures and IT applications in use, and full compliance with regulations and internal provisions. 

By November 30, 2026, the Compliance function and Internal Audit, within their respective responsibilities, must verify the full consistency of the structures, procedures, and practices with the regulatory provisions and the expectations of this Institute, in order to ensure the definitive overcoming of any obstacles to accessing the basic account. An internal report on the findings of the assessments, highlighting any deficiencies and consequent remedial actions, must be approved by the Board of Directors. The Board of Directors will inform the Bank of Italy, at [email protected] , of any remaining deficiencies as of November 30 and will attach the approved remediation plan.

(Adnkronos)