How Safe Are UK Banks?

03 December, 2024

Being able to trust banks and other financial institutions with our money is essential to the modern economy. Banks operate in a very strict regulatory environment, and they take the physical security of assets very seriously. Their reputation with their customers, business clients, and on the international markets, to a large extent relies on that security.

However, we sometimes hear about fraud, theft, or other banking issues that can undermine our faith in the banking sector.

How safe are British banks, and can they be trusted with our money?

Is my money safe in the bank?

We rely on our hard-earned money to pay our way, provide for ourselves and our families, and to build long-term security. We depend on banks, nearly all of which are private institutions, to take care of that money for us. It’s natural to ask is money safe in a bank, and to want to consider where might be the safest place to deposit and invest our money.

As a general rule when asking is my money safe in the bank, UK customers can feel pretty reassured. British banks are recognised as some of the most secure in the world, making them popular with overseas as well as UK customers.

UK banks are regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). These set out strict regulations designed to ensure that customer deposits are kept safe and secure. Under the Financial Services Compensation Scheme (FSCS), individual deposits are protected up to £85,000 per person per bank. So in the unlikely event that a bank fails, customers will have their money protected and returned to them, up to this limit. Most UK bank customers have less than £85,000 in their accounts, meaning that in practice most people have all of their money covered.

Banks are also comprehensively insured to cover losses from theft, fraud, and other criminal activities. In the event of a physical security breach, banks will cover the financial liability, ensuring that customers are not left out of pocket.

Physical security measures in UK banks

If you’re asking is my money safe in the bank, then it’s important to not only consider digital security, but also traditional physical security measures.

Typically, banks in the UK will invest in a range of advanced security systems to protect the assets they hold and to ensure the safety of their staff and customers:

Physical barriers

The first line of protection for UK banks is physical barriers. From automatic doors and speed gates to a variety of other security measures, physical barriers can protect staff and secure particular parts of the building. Bank branch design will often incorporate safety features such as limited access points, which further reduce the risk of unauthorised access.

Access control systems

Most bank branches will use sophisticated access control systems, restricting entry to sensitive areas including cash handling zones and vaults. These systems will usually incorporate electronic key cards, traditional locks, and biometric scanners.

Surveillance systems

UK banks incorporate the latest surveillance technologies, including high-definition CCTV cameras that cover both the interior and exterior of bank branches. Surveillance systems capture evidence during any incidents and allow for real-time monitoring. They can also deter criminal activities. Smart surveillance systems incorporate AI that can recognise any unusual behaviour patterns, alerting security teams to a potential threat.

Security teams

Banks will have their own security team who are trained to manage different security situations. Security personnel will often be visible within branches, providing a deterrent to criminals. They are trained to handle emergency situations, they monitor activities and provide assistance to customers.

Security audits and training

All UK banks conduct regular security audits to assess the effectiveness of their security measures, identify any potential weaknesses, and develop recommendations to enhance security even further. They take a proactive approach, identifying any potential vulnerabilities at an early stage.

Employees will also undergo regular security training, ensuring that they’re able to handle potential security threats, recognise suspicious behaviour, and instigate lockdowns and evacuation plans in the event of an emergency.

Comprehensive security for UK banks and businesses

At Safetell, we work with a wide range of organisations including banks and other financial institutions, to improve their security. From automated doors to speed gates, our products have been developed to meet the evolving security needs of our clients. They have been tried and tested for over 30 years and are designed to provide full comprehensive levels of protection for employees and company assets, protecting against attacks, intrusions and theft.