Barclays can be a hard one to avoid unfortunately. Their partner finance product tends to seek out exclusive arrangements, so in some cases the only way you can get particular things is to finance it through them and only them.
The good news is they’re apparently going to be putting an end to that policy following public complaints from mortgage brokers. I don’t know if it’ll change across the company or just mortgages, but I’d presume they’ll be more accommodating with partner finance and barclaycard et al.
Worst case scenario is they discern this stuff during the credit check and blanket decline applicants who have accounts with only those bank. But I’m not sure why they’d do that. Just take the L. Its antiquated thinking and it wasn’t meant to discriminate beyond e-money institutions in the first place.
I know about that as I would love to avoid Santander for the rest of my life but the car brand I use are partnered with Santander for their finance. You can try and avoid the big banks but they probably do provide most of the finance in the UK.
I do have a barclaycard but that works with Starling without issue. Have managed to unintentionally avoid Barclays for anything else.
That’s using alternative methods of ID and the people (usually homeless/ex-prisoners) have the right of abode in the UK.
Not all Monzo account holders would pass those checks using a non UK/EEA Passport with no residence permit and the only proof of address is the ability to receive the Monzo debit card.
Monzo are a licensed and regulated bank. They have to do their due diligence and abide by the exact same rules as every other bank.
The only difference is their process makes it far more accessible to those that the traditional banking system has always excluded against. The only difference between Monzo and Starling is that Monzo requires no proof of address, and neither does HSBC.
HSBC, not dissimilar to this:
Only needs somewhere they can safely send you your documents and cards, and that’s the role the partner charities play.
Lloyds banking group offers a similar service too, only they go further and require no ID either.
The charity partner just writes a letter of introduction, which isn’t dissimilar to how I got my first bank account in the U.K:
A friend (who was an existing client of the bank) referred me whilst I had no ID, nor an address. It’s an old process but essentially I was verified on their word and their ID documents, and by details were sent to their address. I don’t know if high street banks still work this way, but I’ve not heard anything to suggest they don’t.
You still aren’t accepting the homeless/unbanked service and Monzo are not like for like.
The former will usually utilise non-standard methods of ID but the latter is known to used by people with irregular immigration status that a high street bank wouldn’t accept.
I opened an account with Natwest in the past month and it’s requirements were no different to the two new banks I opened an account with around the same time.
Of course they’re not like for like. That’s not my point, which you seem to be missing. They are just a comparison point.
In each of these cases, whilst banks make exceptions to try to reach people who would otherwise be left behind, it doesn’t necessarily imply that neither do their due diligence.
You’re under the impression that the high street banks still do whilst Monzo do not, so present your evidence. I can’t just accept your claim without any, and don’t have the time to do my own research into it.
The individual (and local friends of their community) had been turned away from every high street bank for an account as they had a non-UK/EEA Passport without the requisite visa. They weren’t on the electoral roll, paid no NI or no taxes and weren’t on any utility bills.
Monzo was known in their community not to check these things including immigration status.
There are so many unknown variables, and given they work for Monzo in fincrime, they might have a helpful perspective.
Monzo are a regulated bank. No different than the high streets. If there’s a legitimate reason these folks aren’t allowed to open bank accounts related to identity, Monzo wouldn’t be able to service them either.
They’re also not alone in abandoning the requirement for proof of address as standard. Chase don’t ask for that either.
For the Barclays basic bank account you just need a passport (any passport), same as Monzo. And one form of proof of address. If you don’t have proof of address there’s a special number you can call or you can have in branch appointment. Lack of proof of address won’t necessarily prevent you from opening a basic Barclays account. It’s just much more burdensome than going with a bank like Monzo.
As I’ve been trying to say though, there isn’t anything untoward about it. It’s a perfectly allowed, modern and accessible vetting process.
