Debanking
Losing access to traditional banking facilities can make life difficult. Our range of alternative banking solutions can help you minimise risk and stay in control of your finances.
What does debanking mean?
Also known as de-risking, debanking is when high street banks close individual or corporate accounts because they believe clients pose financial, reputational, regulatory or even legal risks. Account holders lose access to vital banking services, preventing them from holding funds and making or receiving payments.
Authorised and regulated by the FCA, our multi-currency accounts help clients minimise risk and stay in control if they’re at risk of debanking or have been debanked.
Why do banks close accounts?
Banks close existing accounts or decline financial services for four main reasons.
Account misuse or low use
Many banks close dormant accounts after a period of low activity or inactivity. If you haven’t used your account for months or years, you could get debanked.
Repeated unauthorised overdrafts, bounced pre-arranged payments and signs of identity theft can also trigger offboarding, suddenly leaving you without a bank account.
Enhanced due diligence costs
Accounts held by politically exposed persons (PEPs) demand extra scrutiny. Because enhanced due diligence is an ongoing process, this can cost the bank significant money over time.
Banks often take a risk-versus-reward approach to PEPs and sometimes offboard clients they believe are at an increased risk of bribery or vulnerable to corruption.
Enhanced money-laundering or crime risk
Banks take notice when clients receive unexplained funds from unconnected third parties, transact with high-risk countries, or make or receive seemingly abnormal payments.
If banks believe that an account holder represents a greater risk of money laundering or terrorist financing, they may apply additional due diligence. Again, this can cost the bank a lot of money over time.
Client responsiveness issues
When clients don't confirm their identities, prove where they live or clarify the nature of their businesses, banks can’t fulfil their Know Your Customer (KYC) obligations.
Financial guidelines can change, so if you don’t provide documentation in a timely manner after receiving a request from the bank, your account could be closed.
7-10 days
Quick account opening
What to do after being debanked
Losing a personal or business bank account unexpectedly is both distressing and inconvenient. Here’s what to do next.
01
Contact your bank
If you believe there's been a misunderstanding, ask to speak with your bank’s customer service team. Your bank may decide not to reopen your account: if that happens, you can make a formal complaint.
02
Complain to the Financial Ombudsman Service (FOS)
Eight weeks after filing a complaint with the bank, you can escalate your case to the FOS if you haven’t received a reply or you’re unhappy with the bank’s response.
03
Open a new account
You don’t have to wait to open a new account. One option is to choose an alternative banking provider like Interpolitan, where swift onboarding and personal service come as standard.
Take control with Interpolitan
An alternative account from Interpolitan can help you stay in control if you lose your traditional bank account or are at risk of being debanked.
With an Interpolitan multi-currency account, you can pay partners, move money and do business in more than 160 countries.
The Interpolitan difference
Fintech companies | Interpolitan Money | Traditional banks | |
|---|---|---|---|
EMI | EMI | Bank Licence - FSCS | UK licencing |
Unique named account | Unique named account/IBAN | Unique named account | Account type |
Transact in 30+ currencies | Transact in 50+currencies | Transact in local currency | Functionality |
At least 1-4 weeks | 7-10 working days | Up to six months | Onboarding time |
Somewhat risk tolerant | Risk tolerant - case-by-case review | Generally risk averse | Risk tolerance |
Full multi-currency support | Full multi-currency support | Minimal multi-currency support | Available services |
Asset and account balance requirements vary | No minimum asset and account balance | Minimum asset and account balance required | Account requirements |
Heavily automated service | Personalised account management | Slow ticketing system | Customer service |
Transaction limits, fees vary | Tailored FX risk management | Low support, high fees | Currency exchange |
Funds held with FCA-regulated tier-one banks | Funds held with FCA-regulated tier-one banks | FSCS protected up to £85,000 | Protection |
Digital onboarding only | Digital, in-person and video onboarding | Digital and in-person onboarding | Onboarding |
