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Lord Livermore (Lab)

Speaking in the House of Lords on 27 April 2026

Debate

Online Challenger Banks

Contribution

I am grateful to the noble Lord for his question and for our brief conversation last week about some of the issues he has experienced. He will be aware that many of the issues he raises are ultimately commercial decisions for individual financial institutions, and how they choose to communicate with their customers and potential customers are largely decisions for themselves. He will know that, where a bank decides not to allow an account, it can disclose why it has made that decision, but it is not generally required to do so or to provide detailed reasons. In some cases, banks are legally constrained in what they can or are able to say. I think the noble Lord is interested in the use of AI in some of these decisions. The FCA is clear that automation does not remove a firm’s responsibility; it must retain effective oversight of automated decisions and ensure that decisions are fair and made in accordance with regulatory requirements. But, as I say, the decision about how and whether to communicate that is largely a commercial one for the individual financial institution.

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